Taxation basics
- Buying crypto: Simply buying with Topper is not a taxable event.
- Selling crypto: On Topper, a taxable event occurs when you sell your crypto. The IRS treats these assets as property, meaning gains or losses are subject to taxation.
Tax forms
Will I receive a tax form from Topper?
If you are a registered U.S. individual and have submitted a valid TIN, you will receive a form based on your selling activity.
| Form | Requirement | Availability date |
|---|---|---|
| 1099-DA | Issued if you sold (off-ramped) digital assets in 2025. | Feb 17, 2026 |
| 1099-MISC | Because Topper does not hold your assets or provide staking/rewards, you will not receive a 1099-MISC for Topper transactions. | N/A |
- Stablecoins: Sales of qualifying stablecoins are only reported to the IRS if your total annual gross proceeds exceed $10,000.
- Filing deadline: The U.S. tax filing deadline is April 15, 2026.
How do I get my form?
We make it simple: an email containing a secure download link will be sent to your Topper-registered email account.
Reporting details
How are my taxes calculated?
The IRS treats crypto as property. Your tax is calculated on the Capital Gain (the difference between what you paid for the crypto and what you sold it for).
What reporting method is used?
Topper uses the HIFO (Highest-In, First-Out) method. This assumes you sold the assets with the highest purchase price first, which typically helps minimize your taxable gains.
Disclaimer: Topper does not provide tax advice. Consult a qualified tax professional for your specific situation.