Is it possible to switch from FIFO to HIFO for calculating cryptocurrency gains?

3 answers

• Nov 23, 2021 · 3 years ago
  Yes, it is possible to switch from FIFO to HIFO for calculating cryptocurrency gains. FIFO is the default method used by most cryptocurrency exchanges and it calculates gains based on the order in which the coins were acquired. HIFO, on the other hand, calculates gains based on the highest cost of the coins sold first. To switch from FIFO to HIFO, you would need to keep track of the cost basis of each coin and calculate gains accordingly. It's important to note that switching methods may have tax implications, so it's recommended to consult with a tax professional before making any changes.
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• Nov 23, 2021 · 3 years ago
  Absolutely! You can switch from FIFO to HIFO for calculating your cryptocurrency gains. FIFO is a commonly used method that calculates gains based on the order in which you acquired the coins. However, HIFO takes into account the highest cost of the coins sold first. Switching to HIFO can be beneficial if you want to minimize your tax liability by selling the coins with the highest cost basis first. Just make sure to keep accurate records of your transactions and consult with a tax advisor to ensure compliance with tax regulations.
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• Nov 23, 2021 · 3 years ago
  Yes, it is possible to switch from FIFO to HIFO for calculating cryptocurrency gains. FIFO and HIFO are two different methods used to calculate gains for tax purposes. FIFO calculates gains based on the order in which the coins were acquired, while HIFO calculates gains based on the highest cost of the coins sold first. Switching from FIFO to HIFO can be advantageous if you want to optimize your tax strategy and minimize your tax liability. However, it's important to note that the switch should be done carefully and in compliance with tax regulations. It's recommended to consult with a tax professional to ensure proper implementation.
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