Are there any advantages to using LIFO for cryptocurrency tax purposes?

1 answers

• Nov 28, 2021 · 3 years ago
  As a representative of BYDFi, I can confirm that there are advantages to using the LIFO method for cryptocurrency tax purposes. One advantage is that it allows you to potentially reduce your tax liability by selling the coins with the highest cost basis first. This can be beneficial if you have acquired coins at a lower price in the past and the value of your cryptocurrency has increased significantly. By selling the coins with the highest cost basis, you can minimize your capital gains and potentially lower your tax bill. However, it's important to consider that the LIFO method may not always be the most advantageous, as it depends on various factors such as market conditions and individual tax situations. It's recommended to consult with a tax professional to determine the best method for your specific circumstances.
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