Crypto Cost Basis Tracking Guide for Tax Compliance
Track cryptocurrency cost basis across multiple exchanges and wallets for accurate tax reporting. FIFO, LIFO, and specific identification methods explained.
Summary
Cost basis tracking is critical for crypto tax compliance. This guide explains FIFO vs LIFO, exchange-specific tracking, and import methods for tax software.
Key Steps
- 1Choose cost basis method: FIFO (default), LIFO, or specific ID per transaction.
- 2Import transaction history from each exchange: Coinbase, Binance, Kraken, etc.
- 3Track transfers between wallets: maintain consistent cost basis across platforms.
- 4Use crypto tax software for aggregation: CoinTracker, Koinly, CryptoTrader.Tax.
- 5Verify cost basis accuracy before filing: cross-check exchange records.