You buy bitcoin on one exchange in March 2026 and later move it to a second exchange. A few months on, you sell it there. Then your Form 1099-DA arrives from the second exchange. It shows the sale proceeds, yet the cost basis box sits empty.
That blank box is not a mistake. Under Internal Revenue Service (IRS) 1099-DA instructions, a coin transferred into an exchange is noncovered there. The receiving exchange does not have to report its basis. You report the sale yourself, using the cost and date from the exchange where you bought it.
This guide is for investors who buy on one platform and sell on another. It explains why the basis goes missing and whether the move itself is taxable. It then covers rebuilding your basis, keeping the right holding period, and filing the sale. New to the form? Start with our Form 1099-DA guide.
Key Takeaways
- A coin transferred into an exchange is noncovered there, even if you bought it after 2025.
- Moving coins between your own accounts is not taxable, but crypto spent on a transfer fee is.
- Your holding period runs from the original purchase, not from the transfer date.
- Report the sale in Box H or Box K of Form 8949, using your own basis.
Why Does A Transferred Coin Show Missing Basis On Form 1099-DA?
The IRS treats any coin transferred into a broker account as a noncovered security. For noncovered sales, the broker does not have to report the cost basis. So the receiving exchange leaves that box blank. This holds even for coins bought after January 1, 2026.
What Makes a Transferred Coin Noncovered?
The Form 1099-DA instructions list “a digital asset that was transferred in to the broker” as noncovered. Covered status needs one broker from purchase to sale. Buying after 2025 meets only part of that test. Once the coin leaves, no single broker holds its full history. Mandatory basis reporting then stops.
Which Boxes Show That a Sale Came From a Transfer?
Several boxes on the form itself signal a transferred-in sale:
- Box 9: A check here marks the coin as a noncovered security.
- Box 1g: The cost basis box stays blank, so you supply the figure.
- Boxes 1d and 6: The purchase date and the short-term or long-term label may also be blank.
- Box 12a: This box shows how many units moved into the account.
- Box 12b: This box shows the date the transfer arrived.
What Does Each Exchange Know About Your Coin?
Each platform holds only half of the story. The exchange where you bought the coin knows your cost and purchase date. The exchange where you sold it knows the transfer and the sale. Your return needs details from both platforms, and the table below shows which side holds each one.
Detail | Exchange A (Where You Bought) | Exchange B (Where You Sold) |
Purchase Date | Yes | No |
Purchase Price And Fees | Yes | No |
Units Transferred | Yes, as a withdrawal | Yes, in Box 12a |
Transfer Date | Yes, as a withdrawal | Yes, in Box 12b |
Sale Date And Proceeds | No | Yes, in Boxes 1e and 1f |
Is Moving Crypto Between Exchanges A Taxable Event In The US?
No. Moving coins between accounts you own creates no gain or loss in the US. The only exception is crypto you spend as the transfer fee, will counts as a sale thereby attracting capital gains tax in the US.
Why Is a Transfer Between Your Own Accounts Non-Taxable?
A taxable event needs a sale, an exchange, or some other disposal. A transfer between your own accounts involves none of these. You owned the coins before the move, and you still own them afterward. IRS FAQ 81 confirms this, apart from any coins used to pay for the transfer.
How Are Transfer Fees Paid in Crypto Taxed?
Exchanges often charge withdrawal fees in the coin you move. IRS FAQ 97 treats those fee coins as disposed of. They produce their own small gain or loss. IRS FAQ 53 adds that these fees do not count as transaction costs. So you cannot add them to the basis of the moved coins.
Rebuild your basis from the records of the exchange where you bought the coin. The receiving exchange cannot supply that figure. Start by exporting your purchase history, then match each transfer to its sale. Finally, add any acquisition fees to reach your full cost.
What Records Do You Need From the Original Exchange?
Export your complete transaction history from the exchange where you made the purchase. Each buy in that export should show four details:
- Date and Time: The exact moment of purchase, which starts your holding period.
- Units Bought: The quantity acquired, which you will match against the units transferred.
- Price Paid: The amount you spent, which forms the core of your basis.
- Purchase Fees: Any trading fees or commissions, which add to that basis.
The IRS expects records sufficient to support every figure on your return. Our IRS crypto tax reporting checklist lists what else to keep.
How Do You Match Units Sent With Units Received?
Compare the withdrawal from your first exchange with Boxes 12a and 12b on your form. The units and dates should line up, after allowing for any fee deducted in transit. That match ties each sale back to a specific purchase. It also confirms that the coins you sold are the coins you bought.
What Costs Belong in Your Basis?
Your basis is the price you paid plus the costs of acquiring the coin. The Form 8949 instructions name transaction fees, commissions, and transfer taxes as part of that cost. A purchase fee on the first exchange belongs here. Our guide on calculating crypto cost basis covers the methods in detail.
Which Holding Period Does The IRS Apply After An Exchange Transfer?
The IRS counts your holding period from the original purchase on the first exchange. A transfer between your own accounts is not a new acquisition. It does not restart the clock. Your gain stays long-term or short-term based on when you first bought the coin.
Why Does Your Holding Period Start at the Original Purchase?
Because the transfer is non-taxable, your purchase date carries over unchanged. FAQ 92 orders units by when you acquired them, regardless of when they reached the broker. Using the transfer date instead could shorten your holding period on paper. A sale held over a year could then wrongly appear short-term.
Why Can the Broker’s Lot Order Differ From Yours?
Without your purchase data, the receiving exchange treats transferred coins as acquired at the transfer. It orders its lots from that date. Your own first in, first out (FIFO) order follows the actual purchase dates instead. When the two orders differ, your return follows the purchase dates in your records.
How Do You Choose Specific Units Before a Sale?
You can pick which units to sell instead of relying on the default order. IRS FAQ 85 requires you to tell the broker before or at the time of sale. A standing order set in advance also works. Choosing specific units can help you sell the lots with the most favorable basis.
How Do You Report the Transferred Sale on Form 8949?
Report the sale in Box H for short-term or Box K for long-term on Form 8949. These boxes cover digital asset sales where the broker reported no basis. Enter your rebuilt basis in column (e) and -0- in column (g). Use the original purchase date as the date acquired.
Which Entries Go Into Each Column?
Each column draws on either your Form 1099-DA or your own records. The proceeds come from the broker, while the basis and purchase date come from you. The table maps each column to its source. Our guide on reporting crypto on Form 8949 and Schedule D explains the full form.
Column | What to Enter | Where It Comes From |
(a) Description | Asset name and units sold | Boxes 1b and 1c |
(b) Date acquired | Original purchase date | First exchange’s records |
(c) Date sold | Sale date | Box 1e |
(d) Proceeds | Sale amount after fees | Box 1f |
(e) Cost or other basis | Purchase price plus acquisition fees | First exchange’s records |
(g) Adjustment | -0- | Form 8949 instructions |
(h) Gain or loss | Column (d) minus column (e) | Your calculation |
Section 7 asks for the tax type, form number, and periods. You may skip it if you attach a copy of the notice.
How Does a Transferred Sale Look on Form 8949?
Say you buy 0.5 bitcoin on Exchange A in February 2026 for $30,000, fees included. You move it to Exchange B and sell it in November 2026. Box 1f shows $36,000, and Box 1g is blank. You enter $30,000 as basis, which gives a $6,000 short-term gain in Box H.
What If Exchange B Fills In a Basis Anyway?
Brokers may report basis voluntarily on noncovered sales. The form 8949 treats any Box 1g entry, including zero, as basis reported to the IRS. If that figure is wrong, enter it in column (e) and correct it with code B. The adjustment in column (g) brings your gain to the right amount.
How KoinX Helps You Recover Basis After an Exchange Transfer?
Rebuilding basis after a transfer means joining records from two platforms that never share data. The first exchange holds your purchase, while the second holds your sale. Across several coins and transfers, one missing link leaves a sale without its basis. KoinX connects with 800+ exchanges, wallets, and blockchains, and its reports turn both sides into filing-ready figures.
Buy-Sell Report for Original Purchase Costs
The Buy-Sell Report separates every purchase from every sale across your connected accounts. It shows what you paid on the first exchange, with the date and units of each buy. Those are the exact figures the receiving exchange leaves blank. You can carry them straight into your basis.
Transaction History Report for Matching Transfers
The Transaction History report lists each trade, transfer, and reward with its date and time. It places the withdrawal from one exchange and the deposit at the other in a single timeline. That view lets you tie each sale back to its original purchase, even after several moves.
TurboTax Gain-Loss Report for Filing
Once your basis is rebuilt, the TurboTax Gain-Loss Report formats each sale for TurboTax. It carries your original purchase dates and costs rather than the transfer dates. Your Box H and Box K entries then reflect the true holding period and basis.
Note: 1099-DA Reconciliation is an upcoming feature and is not yet available.
Exchange B can only report what it saw on its own platform. Sign up on KoinX to bring each purchase and transfer into one record. Then report every sale with its true basis and dates.
Conclusion
A transfer moves your coins, but their cost history stays behind on the first exchange. The receiving exchange reports the sale without it, and the IRS rules allow that. Rebuilding the missing basis is therefore your job, not the broker’s.
Before your next transfer, export the purchase records for the coins you plan to move. Keep them with the withdrawal details, so each future sale has its basis and date ready. Rebuild your transferred basis on KoinX and file each sale with figures you can support.
Frequently Asked Questions
Does the Original Exchange Report the Transfer on Form 1099-DA?
Generally, no. The IRS broker reporting FAQs cover this case. A broker that only transfers coins to another platform has no reporting duty here. The move itself is not a sale. Any fee coins spent in the transfer are still yours to report as a disposal.
Does Routing Coins Through a Self-Custody Wallet Change Anything?
No. Each hop between your own wallets and accounts stays non-taxable, apart from fee coins. The coins still arrive at the selling exchange as a transfer-in, so they remain noncovered there. Your basis and holding period still trace back to the original purchase, however many stops occur.
Can You Give Exchange B Your Purchase Records So It Reports Basis?
No. Brokers may use customer-provided purchase data only to decide which units were sold. They cannot use it to report your basis or purchase date. When a broker relies on your data for that lot choice, it checks Box 8. The basis still comes from your own records.
What If You Moved Coins to the Exchange in Several Batches?
Box 12b may then be blank, because the instructions allow it for transfers on various dates. Box 12a still shows the total units transferred in. Your own transfer records must show which batch each sale came from. That match decides the basis and holding period for each lot sold.
