full image - Repost: [US] Got a 1099-DA showing a huge gain you don't recognize? Might be a phantom gain — here's what's happening (from Reddit.com, [US] Got a 1099-DA showing a huge gain you don't recognize? Might be a phantom gain — here's what's happening)
Mining:
Exchanges:
Donations:
Seeing a lot of confusion this season about 1099-DAs showing gains that seem way too high. Most of the time it comes down to one of these three things:Phantom gains from wallet transfers — you bought crypto on one exchange, moved it to a hardware wallet or a different exchange, then sold. The selling exchange has no record of your original purchase. Their 1099-DA shows full proceeds with $0 cost basis. You don't owe taxes on the full amount — just the actual gain over what you paid. You need to document the original purchase and build the transfer chain.Bridge transactions showing as sales — moving assets between chains (Ethereum → Base, etc.) via a bridge is not a taxable event. But some brokers report the outbound leg as a disposal. If you see a sale you don't recognize, check whether it was a bridge transfer.DeFi activity missing entirely — swaps on Uniswap, LP deposits, yield farming — none of this shows up on a 1099-DA because DEXs aren't classified as brokers. But these are still taxable events. If you've used DeFi at all, you likely have unreported activity your 1099-DA won't catch.Happy to answer questions on any of these. What are people seeing out there this season?
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