How does the last in first out (LIFO) accounting method impact the taxation of cryptocurrency transactions?

1 answers

• Prashant SinghDec 13, 2021 · 4 years ago
  At BYDFi, we understand the importance of accounting methods in the taxation of cryptocurrency transactions. The last in first out (LIFO) method can impact the tax liability by assuming that the most recently acquired cryptocurrency is sold first. This can result in a lower capital gain and potentially reduce the tax burden. However, it's essential to note that the use of LIFO may not be accepted by all tax authorities, and it's advisable to consult with a tax professional to ensure compliance with local tax laws and regulations.
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