Crypto Payments in Construction The IRS Is Watching 1099 DA Overview

Описание: The IRS has officially launched Form 1099-DA, a major new reporting requirement for digital asset transactions—including crypto payments, exchanges, and certain real estate deals. This is the most significant change to crypto tax reporting in years, and it directly affects contractors, subcontractors, real estate pros, and anyone using crypto in their business.

This episode breaks down what Form 1099-DA is, why it matters, which transactions get reported, and what contractors must do NOW to stay compliant before the first forms roll out in 2026 for the 2025 tax year.
• IRS rolls out Form 1099-DA
• Applies to 2025 tax year; first issued in 2026
• Impacts anyone using crypto in business: payments, bonuses, investments
Even if you don’t trade crypto, you’re affected if:
• You accept crypto as payment
• You invest company profits in crypto
• Subs use crypto payment processors
• Real estate deals involve crypto
• Your customers pay or get paid through crypto platforms

Bottom line: Contractors are now firmly on the IRS’s radar.
Custodial platforms (Coinbase, Binance, BitPay, etc.) must report:
• Taxpayer info (name, address, TIN)
• What was sold
• Units, sale date, gross proceeds
• Whether sale was for cash, crypto, property, services, etc.
• Cost basis reporting begins in 2026

This closes long-standing IRS visibility gaps.

Reportable events include:
1. Selling crypto for cash
2. Getting paid in crypto for goods/services
3. Crypto-to-crypto trades
4. Using crypto to buy real estate (2026 forward)
5. NFT sales over $600

Not reported in 2025 (for now):
• Wrapping/unwrapping
• LP transactions
• Staking
• Some lending
• Short sales
• Notional principal contracts

Most contractors won’t touch these—but you should know they exist.
• FIFO becomes the default method
• Specific ID still allowed—but you must choose LOTS before or at sale
• Broker must support specific ID for it to count
• 2025 is a transition year

If you invest in crypto:
📌 This is the year to clean up your tracking.
The IRS no longer lets taxpayers treat crypto holdings as one big bucket.

You must track:
• Cost basis per wallet
• Movement of coins between wallets
• Basis allocation across all wallets before Dec 31, 2025

Two allocation options:
1. Specific unit allocation (high precision)
2. Global allocation (spread basis proportionally)

Critical for anyone using multiple exchanges.

Congress killed the IRS’s proposed DeFi reporting rules in 2025.

So:
• DeFi platforms do NOT issue Form 1099-DA
• Custodial brokers DO

You should:
1. Track all crypto payments
2. Choose your accounting method now (FIFO vs. Specific ID)
3. Organize wallets and complete basis allocation by 12/31/2025
4. Use crypto accounting software (not spreadsheets)
5. Consult your CPA (crypto + business = messy tax situations)

Crypto is no longer the “wild west.”

The IRS is tightening enforcement, and 1099-DA is the new tool.
If you accept crypto, invest in it, or even plan to—get your systems ready now.

For help with:
• Recordkeeping
• Basis tracking
• Accounting method selection
• Tax planning
👉 Reach out. I’m here to help.

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Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.