The US IRS and Department of the Treasury Department, on 9 July 2024, published ‘“Gross Proceeds and Basis Reporting by Brokers and Determination of Amount Realised and Basis for Digital Asset Transactions”, outlining the final regulations regarding information reporting and the determination of the amount realised and the basis for certain digital asset sales and exchanges.
The final regulations require brokers to file information returns and furnish payee statements reporting gross proceeds and adjusted basis on dispositions of digital assets affected for customers in certain sale or exchange transactions.
These final regulations also require real estate reporting persons to file information returns and furnish payee statements with respect to real estate purchasers who use digital assets to acquire real estate.
The final regulations outline how digital asset brokers in the US, including payment processors for digital assets (PDAPs), should document their customers for information reporting purposes or to establish exemptions from such reporting for digital asset transactions.
The regulations will become effective starting 9 September, 2024.
