Digital asset (IRS definition)

A digital asset is any digital representation of value recorded on a cryptographically secured distributed ledger, the IRS term that covers cryptocurrency, stablecoins, and NFTs for tax purposes.

How it works

The Infrastructure Investment and Jobs Act defined a digital asset as any digital representation of value recorded on a cryptographically secured distributed ledger or similar technology. The term appears on Form 1040, in the broker reporting regulations, and in the Form 8300 rules. It covers cryptocurrency, stablecoins, NFTs, and tokenized assets.

Why it matters

The definition decides what must be answered yes on the Form 1040 question and what brokers report on Form 1099-DA. It is deliberately broad, and it does not depend on what the asset is called.

Related: the Form 1040 digital asset question, Form 1099-DA.

Where this comes up in our work

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Definitions are general information, not legal advice, and may not reflect the most recent changes in law.