Calculated gains and losses can vary based on the calculation method applied. Review this article to learn more about the different tax implications for different costing methods: FIFO, LIFO, and HIFO - What’s the best method for crypto?
Specific Identification Overview:
CoinLedger will run your reports using the FIFO (First-In, First-Out) calculation method by default. You may update this to one of the Specific Identification calculation methods we support if you have all transaction records that meet the following criteria:
The date and time each unit was acquired,
Your basis and the fair market value of each unit at the time it was acquired,
The date and time each unit was sold, exchanged, or otherwise disposed of, and
The fair market value of each unit when sold, exchanged, or disposed of, and the amount of money or the value of property received for each unit
If you don't meet these criteria for all transactions, FIFO must be used.
How To Change Your Calculation Method:
Step 1
Navigate to your Account Settings page by selecting the profile picture in the top right corner.
Step 2
From the Tax Settings page, select FIFO, LIFO, or HIFO.
Step 3
Navigate to the 4. Reports stage to review your report calculations with this costing method.