What if I used cryptocurrency to buy a product or service?
Menu Path: Income > Common Income > Investments and Savings (1099-INT/DIV/B/DA)
Some companies are beginning to accept cryptocurrency for products or services. Whenever you buy a product or service with cryptocurrency the IRS considers that a sale of your cryptocurrency. You would need to report the sale using the dollar value of the cryptocurrency at the time of the purchase as the sale price.
Example: You purchased a new car with cryptocurrency in 2025. The value of the bitcoin you used to purchase the car at the time was $30,000. You would report the sale as a capital gain on your tax return, using $30,000 as the sale price. You would check your cryptocurrency wallet for the cost basis of the cryptocurrency you used to purchase your new car. Some exchanges will issue a Form 1099-DA or consolidated 1099 that will list your transactions. You would still report the capital gain or loss for the cryptocurrency used in the transaction, even if you didn't receive a Form 1099-DA or consolidated 1099.
Some companies are beginning to accept cryptocurrency for products or services. Whenever you buy a product or service with cryptocurrency the IRS considers that a sale of your cryptocurrency. You would need to report the sale using the dollar value of the cryptocurrency at the time of the purchase as the sale price.
Example: You purchased a new car with cryptocurrency in 2025. The value of the bitcoin you used to purchase the car at the time was $30,000. You would report the sale as a capital gain on your tax return, using $30,000 as the sale price. You would check your cryptocurrency wallet for the cost basis of the cryptocurrency you used to purchase your new car. Some exchanges will issue a Form 1099-DA or consolidated 1099 that will list your transactions. You would still report the capital gain or loss for the cryptocurrency used in the transaction, even if you didn't receive a Form 1099-DA or consolidated 1099.
