HIFO (Highest In, First Out): what it means for crypto tax
HIFO sells the highest-cost lots first, which minimises the reported gain for a given disposal. It requires careful lot-level records and is only allowed in some jurisdictions.
General information, not tax advice. Crypto tax rules differ by country and change over time, verify against your country's guidance or a qualified advisor.
An example
With lots at 1,000 and 2,000, HIFO sells the 2,000 lot first, producing the smallest gain of any method on that sale.
Why it matters for your tax
HIFO can be powerful for managing a tax bill, but its record-keeping burden is high and it is not universally accepted, so it is a method to confirm before using.
CryptaTax handles this automatically across your wallets and exchanges, so the concept is applied consistently without you tracking it by hand. Try the crypto tax calculator →
Related terms
See the full crypto tax glossary for every term, or the crypto tax guides for how they fit together.
FAQ
HIFO sells the highest-cost lots first, which minimises the reported gain for a given disposal. It requires careful lot-level records and is only allowed in some jurisdictions.
See the crypto tax glossary for related terms, or the crypto tax guides for worked examples. Rules differ by country, so check your country's rules.