Crypto Cost Basis Methods Guide for Gain Calculation (2026)
Choose crypto cost basis method: FIFO, LIFO, specific identification, average cost, and cryptocurrency gain calculation.
Summary
Cost basis method affects taxable gains. This guide explains FIFO, LIFO, specific ID, and method selection.
Key Steps
- 1Understand FIFO: first-in first-out, earliest purchases sold first.
- 2Understand LIFO: last-in first-out, most recent purchases sold first.
- 3Specific identification: choose specific coins, must document at sale.
- 4Method selection: affects capital gains timing and tax liability.
- 5Consistency required: must use same method consistently for similar transactions.