How does the first in first out cost basis affect capital gains taxes in the cryptocurrency market?

1 answers

• top100 QuebecSep 13, 2023 · 2 years ago
  In the cryptocurrency market, the first in first out (FIFO) cost basis is commonly used to calculate capital gains taxes. This method assumes that the first assets you acquired are the first assets you sold. FIFO can have a significant impact on your tax liability, as it may result in higher taxable gains compared to other cost basis methods. It's important to keep detailed records of your cryptocurrency transactions and consult with a tax advisor to ensure you are accurately calculating and reporting your capital gains.
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