Cost basis methods to use for crypto vs stocks

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  • #5182
    Exponent500
    Participant

    Hey there,

    I recently found out that due to new IRS guidance that crypto traders can opt to use cost basis methods other than FIFO (such as LIFO, specific lot identification, etc).

    I have two questions as a result of this:

    1. Can I use a method other than FIFO for this year’s crypto filing if I had used FIFO for crypto since I started trading them in 2017? FYI I’ve never received 1099-B’s for crypto since I started trading them in 2017, so whenever I report them on Form 8489 I use box C. Also I’m not sure how the IRS would know that I used FIFO anyway.

    2. Can I use one cost basis method for the above crypto trades (LIFO, or something else), and another cost basis method (FIFO) for the equities i’ve traded? I don’t want to change from FIFO for equities as I’m just fine with that approach and it’s been the one I’ve used since I started back in roughly 2011.

    #6658
    Lewis-H
    Participant

    You simply calculate the average price for your holdings in a coin and use that as the cost-basis.

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