Schedule D changes for 2025: digital assets get their own codes

The IRS added codes G, H, I, J, K and L to lines 1b, 2, 3, 8b, 9 and 10 of Schedule D for reporting digital asset transactions, tied to the new Form 1099-DA and the matching Form 8949 boxes.

The second What’s New item covers qualified opportunity funds: a client who deferred gain into a QOF that meets the 7-year holding period may be eligible for a basis adjustment, figured with Form 8997.

The 2025 Form 1040 instructions say brokers may, but are not required to, report basis on Form 1099-DA for 2025. A 1099-DA showing proceeds with no basis will overstate gain unless you supply the basis from the client’s own records.

• Exchange and wallet transaction histories for every account, not just the one that issued a 1099-DA.
• Records of transfers between the client’s own wallets, which are not sales.
• For QOF investors, the original deferral election and the investment date.

Outside What’s New, the instructions now distinguish qualified small business stock by issue date: for stock issued on or before July 4, 2025, the gross assets test is $50 million; for later stock it is $75 million. Check the issue date before applying the exclusion.