Form 1099-DA field reference
Form 1099-DA Box 1i: Wash sale loss disallowed
What to check
- Do not assume every token is a security
- Add disallowed loss to replacement basis where required
- Reconcile broker and outside-account activity
Where Box 1i flows on your return
An amount in Box 1i is a disallowed-loss adjustment on Form 8949 (using the wash-sale adjustment code) that reduces the loss you can currently claim, with the disallowed amount instead added to the basis of the replacement position.
How Box 1i works
Box 1i applies specifically to "tokenized securities" — digital assets that represent an interest in a traditional stock or security for federal tax purposes — when the broker's records show both a loss sale and a replacement purchase of the same CUSIP-numbered security within the same account. The ordinary wash-sale rule under section 1091 that applies to stocks applies here in the same way.
Not every digital asset can trigger a wash sale under current guidance; a token that is purely a payment or utility asset with no securities-law wrapper generally falls outside section 1091 entirely, which is why most crypto losses are not subject to wash-sale disallowance even though many taxpayers assume otherwise.
When Box 1i shows a disallowed amount, that amount does not just disappear — it is added to the basis of the newly purchased replacement units, deferring the loss rather than eliminating it permanently. Reconcile Box 1i only against same-account, same-CUSIP repurchases; a wash sale computed across different accounts or brokers will not necessarily be caught by any single 1099-DA and may require your own tracking.
Worked example
Sam sells tokenized-security units at a $300 loss and repurchases the same CUSIP-numbered units in the same account nine days later. Box 1i reports the $300 disallowed loss, which Sam cannot deduct this year; instead, that $300 is added to the basis of the repurchased units, reducing any future gain (or increasing any future loss) when those units are eventually sold.
Continue the filing flow
Frequently asked questions
Does the wash-sale rule apply to all crypto losses?
No — Box 1i only applies to "tokenized securities," digital assets that legally represent an interest in a stock or other traditional security, when the same CUSIP is repurchased in the same account within the wash-sale window. Ordinary cryptocurrency that is not wrapped as a security generally is not subject to section 1091 under current guidance.
What happens to a disallowed wash-sale loss reported in Box 1i?
It is not lost permanently — the disallowed amount is added to the basis of the replacement units you repurchased, which reduces your taxable gain (or increases your loss) whenever you eventually sell those replacement units.
Will my 1099-DA catch a wash sale across two different brokers?
Not necessarily. Box 1i is generally based on same-account, same-CUSIP activity the broker can see directly; a wash sale spanning two different brokers or accounts may not appear on either 1099-DA and can require you to track and disallow the loss yourself.