Is it possible to switch from using FIFO to LIFO for crypto tax calculations?

3 answers

• Dec 27, 2021 · 3 years ago
  Yes, it is possible to switch from using FIFO to LIFO for crypto tax calculations. FIFO is the default method used by most tax software and exchanges, but some platforms allow you to choose the LIFO method. LIFO assumes that the most recently acquired assets are the first ones sold, which can result in different tax liabilities compared to FIFO. Before switching, it's important to consider the potential tax implications and consult with a tax professional to ensure compliance with local regulations.
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• Dec 27, 2021 · 3 years ago
  Absolutely! Switching from FIFO to LIFO for crypto tax calculations can be a smart move depending on your specific situation. LIFO can be advantageous if you've acquired crypto assets at a higher cost basis recently, as it allows you to sell those assets first and potentially reduce your tax liability. However, keep in mind that LIFO may not be suitable for everyone, and it's crucial to understand the tax laws in your jurisdiction and seek professional advice before making any changes to your tax calculation method.
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• Dec 27, 2021 · 3 years ago
  At BYDFi, we understand the importance of flexibility when it comes to crypto tax calculations. While FIFO is the default method, we offer our users the option to switch to LIFO if they prefer. Switching from FIFO to LIFO can be done easily through our platform, and our tax calculation tool will automatically adjust the calculations accordingly. However, we always recommend consulting with a tax professional to ensure compliance with local regulations and to make an informed decision based on your specific tax situation.
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