How to calculate LIFO method for cryptocurrency trading?

1 answers

• Jan 10, 2022 · 3 years ago
  As an expert in cryptocurrency trading, I can tell you that calculating gains and losses using the LIFO method is a common practice. The LIFO method assumes that the most recently acquired assets are the first ones sold. To calculate your gains or losses, you need to keep track of the acquisition date and cost of each cryptocurrency asset. When you sell a portion of your holdings, you would use the cost of the most recently acquired assets to determine the cost basis. This method can be beneficial for tax purposes, as it may result in lower capital gains. However, it's important to consult with a tax professional to ensure compliance with local regulations and to get personalized advice for your specific situation. I hope this information helps! If you have any more questions, feel free to ask.
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