Crypto Tax Lot Calculator

Frequently Asked Questions

What is a tax lot?

Each crypto purchase creates a lot with its own cost basis (price + fees) and acquisition date. When you sell, the IRS expects you to match the sale against specific lots to compute realized gain or loss.

FIFO vs LIFO vs HIFO?

FIFO sells oldest lots first (often higher long-term gains). LIFO sells newest first. HIFO (Highest-In, First-Out) sells highest-basis lots first - usually minimizing realized gain in a rising market. HIFO requires specific identification and good records.

Worked example?

You bought 1 BTC at $20k, then 1 BTC at $50k. You sell 1 BTC at $60k. FIFO realizes $40k gain; LIFO/HIFO realizes $10k gain. The remaining BTC carries the other lot's basis for next time.

Does HIFO always win?

No - selling high-basis short-term lots can be worse than long-term FIFO at lower tax brackets. The calculator compares all three methods; final choice should consider long/short-term rates and your overall tax picture. This tool is informational, not tax advice.

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Estimates for informational purposes only.

Important Disclaimer: Estimates for informational purposes only.

This calculator provides estimates for informational purposes only. Results are based on assumptions and may not reflect actual outcomes. Consult qualified professionals in relevant fields before making important decisions based on these results.

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How This Calculator Works

When you sell crypto in a taxable account, your gain (or loss) depends on which specific units you are deemed to have sold. The IRS and most equivalent agencies let you choose an accounting method: FIFO (first-in, first-out) sells your oldest coins first, LIFO (last-in, first-out) sells the newest, and HIFO (highest-in, first-out) sells the most-expensive lots first to minimize the taxable gain. This tool takes your purchase lots and a sale, runs all three methods, and shows the realized gain and estimated tax under each so you can see which is most efficient for the year.

Formula / Method

Gain = proceeds − cost basis. Cost basis under each method is computed by walking the lots in the chosen order (oldest-first, newest-first, or highest-price-first), taking units until the sale quantity is satisfied, and summing qty × per-unit cost. Estimated tax = max(gain, 0) × tax rate. Losses are shown as negative gains; this tool does not apply a separate loss rate because most jurisdictions let losses offset gains dollar-for-dollar.

Worked Example

Lots: 1 BTC at $20k, 0.5 BTC at $30k, 0.75 BTC at $45k, 0.25 BTC at $65k. You sell 1 BTC at $60k, proceeds = $60,000. FIFO uses the 1 BTC at $20k → cost basis $20,000, gain $40,000. LIFO uses 0.25 @ $65k + 0.75 @ $45k → cost basis $16,250 + $33,750 = $50,000, gain $10,000. HIFO uses 0.25 @ $65k + 0.5 @ $30k + 0.25 @ $20k → not optimal; the true HIFO order is 0.25 @ $65k + 0.75 @ $45k = $50,000, gain $10,000. At a 24% rate, FIFO costs $9,600 and HIFO/LIFO each cost $2,400 - a $7,200 swing on a single trade.

Common Mistakes

Switching methods mid-year without proper specific-identification records - the IRS requires you to identify the lot at or before sale.

Forgetting holding period: long-term (≥ 1 year) gets a preferential rate in many countries; HIFO may push gains into short-term unintentionally.

Treating crypto-to-crypto swaps as non-taxable - in the US and most jurisdictions, they realize gain.

Ignoring transfer fees and exchange fees that adjust the basis and the proceeds.

Combining lots from different wallets without per-wallet records, which complicates audit defense.

Tips & FAQ

Keep contemporaneous lot records: date, quantity, price, and the wallet or exchange. Crypto tax software (Koinly, CoinTracker, TokenTax) automates much of this and can switch methods consistently across a tax year. HIFO usually wins for tax in any year prices rose; FIFO often gives the lowest tax in years prices fell because oldest lots may carry the largest losses. Some jurisdictions (UK, Canada, Australia) mandate specific methods (share-pooling, ACB) and forbid HIFO outright - always confirm your local rules. This is an educational estimate, not tax advice; consult a qualified tax professional for your actual filing.

Frequently Asked Questions

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