Nifty Gateway Tax FAQs 2025

Nifty Gateway does not provide tax advice. The information below is provided for general purposes only and should not be considered tax advice. This information is based on U.S. Internal Revenue Service (“IRS”) guidance received to date, which may continue to evolve and change. Please consult a tax advisor to determine your personal tax obligations that result from your activities on Nifty Gateway. 

Updated U.S. tax reporting regulations require Nifty Gateway to report proceeds from sales of digital assets, including non-fungible tokens (“NFTs”), on Form 1099-DA starting January 1, 2025. Reporting is required annually, with recipient statements delivered to customers by February 15 to report prior year sales, as well as IRS e-file delivery after recipient statements are issued. 

Sales/exchanges of NFTs will be reported to U.S. customers on an aggregated basis. Dispositions of other digital assets (ETH) for the purchase of NFTs will be reported to U.S. persons on an itemized basis. Forms 1099-DA issued to the IRS and customers will include proceeds from sales only. It is important to identify how these proceeds should be reported on your individual U.S. tax filing, based on your individual situation, including NFT artists and secondary buyers/sellers of NFTs. 

Customer Forms 1099-DA are prepared using the name/TIN information on record for each account. If this information is not represented correctly on your Form please submit a ticket via our Help Center, here.

If you do not receive your Form 1099-DA by February 25, please submit a ticket via our Help Center, here.

What is a Form 1099-DA? 

Forms 1099-DA report the proceeds of sales or dispositions of digital assets made in 2025. They are required to be issued by all US digital asset exchanges (including custodial NFT exchanges) for any sales or dispositions of digital assets, including NFTs, made by US persons starting on January 1, 2025. NFTs qualify for an exemption from reporting if aggregate sales are less than $600 for the year. 

If you are a U.S. person that sold NFTs worth more than $600 USD, or you purchased any NFTs using ETH during 2025 you will be issued a Form 1099-DA. 

Forms 1099-DA issued by Nifty Gateway do not reflect the cost basis of the NFTs sold or ETH disposed of, so the cost of the asset sold should be identified to properly calculate a gain or loss (or net amount of income) resulting from that sale or disposition on a U.S. tax filing. 

What transactions does this Form cover? 

Forms 1099-DA are issued for aggregate sales of NFTs. If you sold NFTs on the Nifty Gateway platform that represented $600 or more in USD value during 2025, a Form 1099-DA was issued for your account. 

Dispositions of ETH: If you used ETH to purchase an NFT, that is a qualifying disposition that is also required to be reported on a Form 1099-DA. Each ETH disposition is reported separately. There is no de minimus threshold for reporting ETH distributions. Your form may show $0 in ETH proceeds from a sale. This might occur if you disposed of an amount of ETH worth less than $1. 

Example:

• You bought an NFT for 1 ETH when ETH was worth $2,000.
• Nifty Gateway must report this as a disposition of ETH with $2,000 in proceeds on your Form 1099-DA.
• This does not mean you owe $2,000 in tax. You must compare this to what you originally paid for that ETH to determine your gain or loss.

What do I do with my Form 1099-DA? 

Form 1099-DA information is issued to the IRS. As such, it’s important to report the proceeds you received on your US tax filing (for example, on a Form 8949). Since only the proceeds are reported on your Form you will also need to identify the cost of those assets that were reported as disposed of to determine your gain or loss for tax purposes. Please consult your tax advisor as to the correct way to report the information on your Form 1099-DA on your tax filing. 

Artist Forms 1099-DA

If you are an artist who minted NFTs on Gemini, your Form 1099-DA will reflect this in Box 11c. Proceeds for both primary and secondary sales of NFTs are reported in Box 11c. Please consult a tax advisor to determine how the proceeds for primary and secondary sales of your NFTs should be reported on a U.S. tax filing. 

Is there a way to reconcile the Form 1099-DA with information in the Customer’s account? 

Collectors can reach out to us here and officially request a csv of their account transaction history, which we produce via Looker.


Nifty Gateway is unable to provide you with tax and/or legal advice and any information herein is for general informational purposes only. Please consult with a tax professional for questions related to your individual tax situation.