LIFO (Last In, First Out): what it means for crypto tax
LIFO assumes the most recently acquired coins are sold first. It can reduce a gain in a rising market by matching sales against higher, more recent bases, but not every country permits it.
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, selling 1 unit under LIFO uses the 2,000 lot, giving a smaller gain than FIFO on a higher sale price.
Why it matters for your tax
LIFO can lower a gain where it is allowed, but its acceptance is limited, so always confirm your country permits it before relying on it.
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
LIFO assumes the most recently acquired coins are sold first. It can reduce a gain in a rising market by matching sales against higher, more recent bases, but not every country permits it.
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.