ADMINISTRATIVE, INCOME TAX

T.D. 10000, page 185. The regulations require information reporting by brokers for certain digital asset sales and exchanges. They apply to brokers who take possession of the assets involved in these sales and exchanges, including custodial digital asset exchanges, certain hosted wallet providers, certain processors of digital asset payments, and digital asset kiosks, which are sometimes known as digital asset ATM machines. Brokers covered by these final regulations will be required to file new Form 1099-DA and furnish payee statements reporting the gross proceeds of transactions occurring on or after January 1, 2025. Certain brokers will be required to report basis on Forms 1099-DA for transactions occurring on or after January 1, 2026. Basis reporting is required only if the customer acquired the digital asset being sold or exchanged from the same broker on or after January

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1, 2026. Real estate reporting persons, who were already required to file information returns under the existing section 6045 regulations, will now also be required to report dispositions of digital assets as all or part of the purchase price of real property, beginning with transactions occurring on or after January 1, 2026. In addition to the broker reporting rules, these regulations also establish rules for calculating the value and basis of digital assets.