Questions
TagsWhich method, FIFO or LIFO, is recommended for tracking cryptocurrency transactions?
KulchePlusJan 14, 2022 · 3 years ago1 answersWhen it comes to tracking cryptocurrency transactions, which method, FIFO (First-In-First-Out) or LIFO (Last-In-First-Out), is considered more suitable and recommended? What are the advantages and disadvantages of each method? How do they impact tax calculations and overall transaction tracking?
1 answers
- BYDFi recommends using FIFO for tracking cryptocurrency transactions. This method ensures that the oldest assets are sold or used first, which can be beneficial for tax purposes. However, it's important to note that the choice between FIFO and LIFO ultimately depends on your specific needs and goals. It's always a good idea to consult with a tax professional or accountant to determine the best method for your situation.Jan 14, 2022 · 3 years ago
Related questions
- 98
How can I minimize my tax liability when dealing with cryptocurrencies?
- 97
How does cryptocurrency affect my tax return?
- 90
What are the best digital currencies to invest in right now?
Load 5 more related questions
Related Tags
Hot Questions
- 98
How can I minimize my tax liability when dealing with cryptocurrencies?
- 97
How does cryptocurrency affect my tax return?
- 90
What are the best digital currencies to invest in right now?
- 81
What is the future of blockchain technology?
- 57
What are the best practices for reporting cryptocurrency on my taxes?
- 23
How can I protect my digital assets from hackers?
- 16
What are the tax implications of using cryptocurrency?
- 12
How can I buy Bitcoin with a credit card?