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.
Sign in to your Coinbase account.
Select
then choose Manage your profile.Select
then choose Settings. Select the dropdown next to Cost-basis method.
Your current method is reflected.
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.
Select the method to apply to future transactions.
Select Save.
Access the Coinbase mobile app.
Select
then choose Profile & Settings.Select Taxes then choose Settings.
Select the dropdown next to Cost-basis method.
Your current method is reflected
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.
Select the method to apply to future transactions.
Select Save.
Related article(s):
