What do gross proceeds and cost basis mean on Form 1099-DA?

This article will explain gross proceeds and cost basis when reviewing your Form 1099-DA.

What are gross proceeds?

Gross proceeds generally refers to the amount you received when a digital asset was sold or otherwise disposed of.

Gross proceeds are not necessarily your profit or taxable gain.

For example, if you purchased a digital asset for $8,000 and later sold it for $10,000, your gross proceeds may be reported as $10,000. Your gain may be $2,000 before considering applicable tax rules or adjustments.

What is cost basis?

Cost basis generally refers to the amount used to determine your gain or loss when you sell or otherwise dispose of an asset.

For 2025 transactions, your Form 1099-DA generally will not include the original cost of your digital asset.

Metal Pay uses the FIFO (First In, First Out) accounting methodology to calculate cost basis.

You may need to use your Metal Pay transaction history and other records when determining your gain or loss for your tax return.

Note: Metal Pay does not provide individual tax advice. Please consult a qualified tax professional if you need assistance determining your cost basis, gain, loss, or tax liability.

Important Tax Disclosure & Disclaimer
For Informational Purposes Only
The information, guides, and materials provided on this platform regarding IRS Form 1099-DA and Form W-9/W-8 tax requirements are for general informational purposes only.
Metal Pay does not operate as, nor does it represent, the Internal Revenue Service (IRS) or any government agency

Need more help?

If you have questions about your Metal Pay tax documents, please contact our Client Services team.