Accounting methods · 5 min
LIFO cost basis for crypto
Last-In, First-Out treats your newest acquisitions as the ones sold — useful to understand, even when FIFO is more common.
Last-In, First-Out (LIFO) treats your newest acquisitions as the ones sold. It is less common for retail crypto filers than FIFO or HIFO, but understanding LIFO helps when comparing software outputs or modeling scenarios your CPA proposes.
LIFO vs economic reality
LIFO can increase recognized gains when prices rise over time, because you dispose of recent higher-basis lots while older low-basis lots remain. Conversely, in drawdowns, LIFO may behave differently than FIFO. The right method depends on your facts and professional advice — not generic blog guidance.
Software support
CryptoTax8949 includes LIFO alongside FIFO, HIFO, hybrid policies, and specific lot selection so you can align exports with your elected accounting method.