Understanding Crypto Tax Calculations Using FIFO

Hey everyone, I’m struggling to figure out my crypto taxes using FIFO. I put in around 25k back in 2017/2018 and lost a chunk during the downturn. Now my balance is like 4k, so I thought my loss would be 21k? But the tax software says I only lost 2k over 2 years... What’s going on?

Seems like either your software is messed up or maybe there’s a data entry issue. Honestly if your numbers are that off, you gotta check your gains and losses again. Don’t forget about those pesky transaction fees that can mess with your totals too.

I’m in the UK, and do you have all your trades in a spreadsheet? I’m sorting mine out for tax season too. Just to clarify, if you hold onto bitcoin, you don’t count it as a loss until you sell, right? That also goes for altcoins, like if you swap BTC for USD and plan to switch back, no tax hit unless you pull out profits.

Totally agree. Tax deadlines might have passed but this info is still very relevant. You need to understand which taxes apply to your crypto holdings. If your coins are subject to input VAT, that might change how losses are calculated. Keep an eye on what counts as a gain when you actually sell.

What tax software are you using? I’m curious if there’s any good recommendations for tracking using LIFO instead. Does the software clearly tell you what to keep track of?