Crypto Tax FIFO vs LIFO: Cost Basis Methods
When you sell crypto, **cost basis method** decides which purchase lots match the sale. **FIFO** (first-in-first-out) often raises gains in bull markets; **LIFO** and **specific ID** can lower tax if lots are identified correctly.
Step by step
1. Export trade history
Exchanges, wallets, bridges—gaps cause wrong basis.
2. Pick consistent method
Follow jurisdiction rules; some allow specific ID with records.
3. Reconcile transfers
Treat self-transfers as non-taxable moves with carried basis.
FIFO vs LIFO
Not tax advice—methods change realized gain on the same sale price.
- FIFO: Sells oldest lots first; simple default in many tools.
- LIFO: Sells newest lots first; can defer older low-basis lots.
- Specific ID: Choose lots if documentation supports it.
Use our calculators
Common mistakes
- Missing staking income
- Ignoring swap taxable events
FAQ
Does every country allow LIFO?
Rules vary—confirm with a tax professional for your filing jurisdiction.