XRP holders may have only months to organize records before new digital asset reporting rules begin to affect how their transactions are documented.
Crypto commentator BULLRUNNERS has warned XRP holders that 118 days remain in the 2026 tax year, which he described as the first year when brokers begin reporting cost basis for certain digital asset transactions.
In the video attached to his X post, BULLRUNNERS focused on Form 1099-DA and the changes introduced by the Treasury Department and IRS. He explained that brokers previously reported the proceeds from digital asset sales but generally did not report what the taxpayer originally paid.
He then urged XRP holders to determine how many separate locations have held their XRP, including exchanges, hardware wallets, and other accounts.
RIPPLE XRP HOLDERS HAVE 118 DAYS LEFT ON THIS… (EPIC CRYPTO NEWS)
Time stamps,
00:00 – What is Form 1099-DA? & The 118-Day Deadline
00:43 – Exercise: Counting Your XRP Locations
01:13 – Treasury Decision 10000 & The 3-Phase Rollout
02:06 – 2025 vs. 2026 Reporting: Proceeds vs.… pic.twitter.com/zBGgtJxBdc— BULLRUNNERS (@BullrunnersHQ) September 12, 2026
Covered And Non-Covered XRP
BULLRUNNERS said the reporting rules create an important distinction between covered and non-covered digital assets. Under his explanation, XRP acquired and held with the same broker during 2026 can fall under the covered category, meaning the broker reports the cost basis.
However, XRP purchased before 2026 does not receive the same treatment. He also pointed to XRP transferred from one exchange or wallet to another as non-covered because the receiving broker may not know the original purchase price.
For long-term XRP holders, this distinction could leave much of their holdings outside broker-reported cost basis records. BULLRUNNERS said a broker can report the sale proceeds while leaving the basis field blank.
“The IRS does not assume that you paid a fair price,” he said. “The IRS does not assume anything.”
Each Wallet And Account Matters
BULLRUNNERS also focused on Revenue Procedure 2024-28 and how digital asset records are treated. He said XRP holders should no longer think of their holdings as one universal pool when tracking cost basis.
“Your basis is not one number anymore. It’s one number per location,” BULLRUNNERS said.
He explained that exchanges, cold storage, and on-chain wallets can require separate records. He also referenced the safe-harbor provisions for allocating unused basis across different locations as of January 1, 2025.
This means XRP holders with assets spread across multiple platforms may need detailed records showing units, acquisition dates, and original costs.
BULLRUNNERS Urges XRP Holders To Document Their Positions
BULLRUNNERS also discussed the $10,000 threshold for certain stablecoin transactions and the $600 threshold for specified NFTs. He noted that XRP does not receive an equivalent carveout under the rules he discussed.
He further focused on the connection between digital asset transactions and taxpayer identities. BULLRUNNERS said Form 1099-DA can connect a public blockchain address with information submitted by a regulated broker.
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He urged XRP holders to document their positions before the end of the year and take their records to qualified tax professionals.
“I’m telling you the difference between a position documented on your terms and one reconstructed for you later by somebody else,” he said.
BULLRUNNERS concluded by directing viewers toward Treasury Decision 10000, Revenue Procedure 2024-28, IRS Form 1099-DA instructions, and an IRS tax tip. He also reminded viewers that his content is educational and does not replace professional tax or financial advice.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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