Disposition
Plain definition. In the IRS’s guidance on digital assets, a disposition means disposing of a digital asset you held, for example by selling, exchanging or transferring it.
Technical definition. The IRS describes disposing of a digital asset held as a capital asset “through a sale, exchange or transfer.” It lists “any other disposition of a financial interest in digital assets” as a digital asset transaction, alongside sales, exchanges of digital assets for property, goods or services, and trades of one digital asset for another. Taxpayers use Form 8949, Sales and other Dispositions of Capital Assets, to calculate a capital gain or loss, and they report that result on Schedule D (Form 1040).
On this site
On this site, Disposition comes up in Do I pay tax on XRP in Canada or the US?, How do I work out my cost basis and gain on XRP bought at different times and prices?, What records do I need to keep and report for crypto taxes? and Can I deduct crypto I lost to a scam?.
Source
What taxpayers need to know about digital asset reporting and tax requirements | Internal Revenue Service (irs.gov), read October 1, 2026.