Your tax form reports your capital gains and losses from selling or disposing of bitcoin. Below is a guide to reading your tax form for each tax year.

Form 1099-DA

Starting with the 2025 tax year, Strike issues Form 1099-DA for all taxable bitcoin transactions. The 1099-DA is specifically designed for digital assets, including bitcoin. You can read more about which bitcoin-related transactions are considered taxable or non-taxable.

Reading your 1099-DA

Your 1099-DA includes your account information and details of your taxable bitcoin transactions. Here's an explanation of the key sections and fields:

Summary table

At the top of your 1099-DA, you'll find a summary table that breaks down your transactions into categories based on holding period and whether cost basis is reported to the IRS. For each category, the summary shows Total Proceeds, Total Cost Basis, Realized Gain/Loss, and Federal Income Tax Withheld.

Transaction details

Below the summary, your individual transactions are grouped into sections based on holding period (short-term or long-term) and whether they involve covered or noncovered digital assets. Each section header indicates the type of transactions it contains. For the 2025 tax year, your transactions will appear under the noncovered section, meaning cost basis is not being reported to the IRS.

Each transaction row includes the following fields:

1. Name and code of digital asset: The name, ticker symbol, and unique identifier for the digital asset involved (e.g., BITCOIN (BTC) followed by an alphanumeric code).
2. Number of units: The quantity of bitcoin sold or disposed of in the transaction (e.g., 0.0003).
3. Date acquired: The date you originally acquired bitcoin on Strike. If bitcoin was transferred from an external source, this may be blank, since the actual acquisition date may be unknown.
4. Date sold or disposed: The date you sold or disposed of bitcoin on Strike.
5. Proceeds: The gross amount you received from selling or disposing of bitcoin.
6. Cost or other basis: The original price you paid for bitcoin. For the 2025 tax year, Strike will not report cost basis to the IRS, so this field may be blank on the IRS copy of your form. You remain in control of the cost basis reported on your tax return, regardless of what appears on your Strike tax form.
7. Number of units transferred in / Transfer in date: If bitcoin was transferred into your Strike account from another wallet or exchange, these fields show the quantity and date of the transfer.
8. Federal/State tax withheld: The amount of tax withheld per transaction. Since there is no tax withheld on Strike, these fields will show as dashes.

Additional checkboxes may appear for Proceeds is cash only and Customer-provided information, which indicate whether the proceeds were entirely in cash and whether you provided acquisition information to Strike.

What is my cost basis?

Your cost basis is simply the original price you paid to acquire your bitcoin. For tax purposes, when you sell bitcoin, you must determine your gain or loss by subtracting your purchase price from your sale price. If you bought bitcoin over multiple purchases at different prices, then each purchase is considered a separate "lot" with its own cost basis.

There are different methods for tracking cost basis, including FIFO (First In, First-Out), LIFO (Last In, First Out), and HIFO (Highest In, First Out). By default, Strike uses HIFO, which means the bitcoin with the highest purchase price is sold first. For any amount of bitcoin that was received into your Strike account from an external source, the original purchase price is unknown and is summarily treated as having a $0 cost basis.

Read more about HIFO cost basis here.

Why are there multiple rows for a single bitcoin sale?

A single sale of bitcoin can occupy multiple rows within your taxable transactions. This can occur if the amount of bitcoin you're selling is larger than your highest-priced lot, requiring the sale to pull from multiple lots purchased at different prices.

This is common if you bought bitcoin in multiple smaller purchases (such as through recurring purchases) and later sold a larger amount all at once. With HIFO, your sale will pull from multiple bitcoin lots, starting with the one purchased at the highest price and then moving to the next highest-priced lot until the full sale amount is covered.

Form 1099-B

If you sold or disposed of bitcoin using Strike in 2024 or in prior years, you received Form 1099-B. Your 1099-B included your account information and a table summarizing your taxable bitcoin transactions:

1. Date acquired: The date you originally bought bitcoin on Strike. If bitcoin was added from an external source, then this showed as "*", since the actual purchase date was unknown.
2. Date sold or disposed: The date you sold or exchanged bitcoin on Strike.
3. Proceeds: The amount of money you received for selling bitcoin.
4. Cost or other basis: The original price you paid for bitcoin. If bitcoin was added from an external source, then this showed as "*", since the original purchase price was unknown.
5. Total Short-Term: The total gains or losses from selling bitcoin held for one year or less.
6. Total Long-Term: The total gains or losses from selling bitcoin held for more than one year.

The "Accrued market discount" and "Wash sale loss disallowed" did not apply to bitcoin transactions made on Strike, so these were always shown as $0.00. Since there was no tax withheld on Strike, the "Federal Income Tax Withheld" and "State Tax Withheld" also appeared as $0.00.