Select your cost-basis accounting method

Cost-basis accounting methods allow you to choose which asset you sell, trade, or spend first for purposes of calculating your tax liability. With Coinbase Taxes, we calculate your gains or losses using the cost-basis specification you select. 

You can view and select your cost-basis accounting method in your Coinbase settings.

Method

Definition

HIFO (Highest In, First Out)

First dispose of assets with the highest original purchase price

LIFO (Last In, First Out)

First dispose of assets that you acquired most recently

FIFO (First In, First Out)

First dispose of assets that you acquired first

View or select your cost-basis method

The first time you visit your tax center settings, you’ll be asked to confirm your cost-basis method used in previous years. Select the method you used in previous tax years to avoid paying taxes twice on the same capital gain events.

Tip:

Select the method you used in previous tax years to avoid paying taxes twice on the same capital gains events. Once you confirm your historical method, you cannot change it again.

  1. Sign in to your Coinbase account.

  2. Select Migrated from https://help.coinbase.com/content/dam/help/articles/consumer/icons/Avatar.png, updated at Mon Apr 11 2022 12:52:36 GMT-0700 (Pacific Daylight Time)then choose Manage your profile.

  3. Select Navigation icon then choose Settings.

  4. Select the dropdown next to Cost-basis method.

    • Your current method is reflected.

  5. Confirm the method you used for previous years. (if applicable)

    • Select Keep HIFO method for all years if you've previously filed and paid taxes using this method and choose Confirm.

    • Select I want to update if you used a different method to file and pay taxes previously. Select your preferred method then choose Save.

  6. Select the method to apply to future transactions.

  7. Select Save.

Tip:

Select the method you used in previous tax years to avoid paying taxes twice on the same capital gains events. Once you confirm your historical method, you cannot change it again.

  1. Access the Coinbase mobile app.

  2. Select then choose Profile & Settings.

  3. Select Taxes then choose Settings.

  4. Select the dropdown next to Cost-basis method.

    • Your current method is reflected

  5. Confirm the method you used for previous years. (if applicable)

    • Select Keep HIFO method for all years if you've previously filed and paid taxes using this method and choose Confirm.

    • Select I want to update if you used a different method to file and pay taxes previously. Select your preferred method then choose Save.

  6. Select the method to apply to future transactions.

  7. Select Save.

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