Cost-basis methods

Last verified	Status
28-10-2026	approved by the owner (accountant), 28-10-2026

Not tax advice. Rules summarised from official sources, linked where each rule is stated, as verified on the date above. Confirm with a qualified adviser before filing.

Methods explained#

All figures in the examples below are illustrative. They are not taken from any tax authority.

Every example uses the same trades in one token, held in one wallet unless stated:

Date	Event	Units	Price per unit	Total
01-01	Buy (lot 1)	1	100	100
01-03	Buy (lot 2)	1	300	300
01-06	Sell	1	400	400
15-06	Buy (lot 3)	1	350	350

The 15-06 buy matters only where a matching rule looks forward from the sale.

FIFO (first in, first out)#

The oldest units still held are treated as sold first.

Step	Figure
Unit sold	Lot 1
Cost	100
Gain	400 − 100 = 300

Required or accepted in: US default, Ireland shares (Revenue, s.580 note for guidance), Germany securities in collective custody, South Africa (SARS draft crypto guide, IT3(c) clarification), Singapore, Australia fallback.

LIFO (last in, first out)#

The newest units held at the sale date are treated as sold first.

Step	Figure
Unit sold	Lot 2
Cost	300
Gain	400 − 300 = 100

LIFO is listed only in the ATO share guidance. Singapore, South Africa trading stock and Indonesia inventory reject it by name.

Average cost (weighted average, ACB, PMP)#

Each unit carries the average cost of all units held. A sale does not change the average of the units left.

Step	Figure
Average cost at the sale	(100 + 300) ÷ 2 = 200
Cost	200
Gain	400 − 200 = 200
Average of the unit left	200

Required in Canada (ACB, ITA s.47) and for French shares (PMP). Accepted in Singapore and, for value only, Germany crypto. Not available for South African crypto (SARS draft crypto guide, IT3(c) clarification).

Matching order (CRYPTO22200, HS284): same-day acquisitions first, then acquisitions in the next 30 days, then the section 104 pool at average cost. The 30-day rule applies to gains and losses alike.

Step	Figure
Same-day acquisitions on 01-06	None
Acquisitions in the next 30 days	Lot 3 (15-06), cost 350
Cost	350
Gain	400 − 350 = 50
Pool after 15-06	Lots 1 and 2: 2 units, cost 400, 200 each
Gain if lot 3 had not been bought	400 − 200 = 200 (pool cost)

Specific identification#

The taxpayer names the unit sold, if records show which unit it is (IRS FAQ, ATO share guidance, BMF letter).

Unit chosen	Cost	Gain
Lot 1	100	300
Lot 2	300	100

Choosing the highest-cost unit (HIFO) is one use of specific identification. The ATO share guidance lists HIFO by name.

France: portfolio formula (crypto)#

Gain = P − A × (P ÷ V) (Notice 2086, BOFiP). P is the sale price. A is the total price paid for all crypto the household ever acquired, less cost already used. V is the value of the whole household crypto portfolio just before the sale.

Case	P	A	V	Gain
Household holds only this token (2 units worth 400 each)	400	400	800	400 − 400 × 0.5 = 200
Household also holds another token, cost 200, worth 200	400	600	1,000	400 − 600 × 0.4 = 160

Holdings of other tokens change the gain. No lot is identified.

Per-wallet pools#

The method runs inside each wallet or account, not across the whole portfolio. US from 01-01-2025. Germany crypto (Rz 62).

Same trades, but lot 1 sits on exchange A, lot 2 on exchange B, and the sale is from exchange B:

Method	Cost	Gain
FIFO across all wallets	100 (lot 1)	300
FIFO per wallet (US 2025+, Germany)	300 (lot 2)	100
UK pool (one pool across all wallets)	200	200, or 50 with the 15-06 buy

Netherlands: Box 3 deemed return (no method)#

Box 3 taxes a deemed return on net wealth at 1 January. The sale on 01-06 is not a taxable event, so no cost basis applies.

Item	Figure
Gain on the sale for Box 3	None computed
Tax base	Value of the holding on 1 January

Indonesia: final tax on gross value (no method)#

Crypto sales carry a final tax on the gross transaction value from 01-08-2025: 0.21% via a domestic platform, 1% via a foreign platform (PMK 50/2025).

Item	Domestic platform	Foreign platform
Base	400	400
Tax	0.84	4.00
Cost used	None	None

Summary of the example#

Method	Gain on the 01-06 sale
FIFO	300
LIFO	100
Average cost	200
UK pooling (with 15-06 buy)	50
UK pooling (without 15-06 buy)	200
Specific identification	100 or 300
France formula (one token held)	200
Netherlands Box 3	No gain computed
Indonesia	No gain computed; tax on 400 gross

By country#

Country	Crypto method	Shares method	Pool scope	Matching rules	LIFO allowed
Australia	No method mandated for crypto by the ATO. Share guidance: specific identification where records allow; otherwise FIFO	Specific identification or FIFO; guidance also lists LIFO and HIFO; method may differ per parcel sold (TR 96/4)	Per parcel; each crypto asset tracked separately	—	Shares: listed in ATO guidance. Crypto: not stated by the ATO
Canada	Adjusted cost base (average) across identical property, ITA s.47	Same: ACB, ITA s.47	All identical property the taxpayer holds (whole portfolio)	Superficial loss, ITA s.54: 30 days before to 30 days after, includes affiliated persons, held at window end, denied loss added to ACB. Applies to crypto and shares	No
France	Portfolio formula, CGI art. 150 VH bis	Weighted average price (PMP), CGI art. 150-0 D 3; mandatory	Crypto: whole household portfolio, all platforms and wallets. Shares: securities of the same nature; where they sit with several intermediaries, each may compute the average account by account as an administrative simplification	Crypto: none	No
Germany	Specific identification first. If impossible: FIFO for the holding period; average cost for value, or FIFO as a simplification. Method fixed per token per wallet until that holding is sold out (Rz 61–62)	FIFO for fungible securities in collective custody, §20 EStG	Crypto: per wallet. Securities: per collective custody	Crypto: none	No
Indonesia	None needed. Final tax on gross value: 0.21% domestic, 1% foreign platform. Acquisition price still reported in the SPT asset list	IDX-listed shares: 0.1% final tax on gross value, no cost basis. Business inventory: average or FIFO, no LIFO, change needs DJP approval	Not applicable	None found	No (inventory)
Ireland	Not stated by Revenue	FIFO for shares of the same class, s.580(1)	Shares: whole holding of the same class	Four-week rule, s.581: a sale is matched first to shares bought in the 4 weeks before; a loss is restricted if re-bought within 4 weeks after. Covers spouses living together	No
Netherlands	None. Box 3 deemed return on 1 January wealth	None. Same Box 3 regime	Not applicable	None	Not applicable
Nigeria	Not prescribed by the NTA. Gain computed in USD per acquisition, USD gain converted at the CBN/NAFEM rate on the sale date	—	—	None identified	—
Singapore	Only where a gain is taxable (trading): FIFO or weighted average (para 5.7)	No capital gains tax	—	None found	No
South Africa	Capital account: specific identification or FIFO. Weighted average not available. Trading stock: any method except LIFO	Specific identification, FIFO or weighted average for SA-listed shares	Identical assets (para 32(2))	Paragraph 42: loss disregarded if an identical asset is acquired within 45 days before or after; applies to crypto; includes connected persons	No
Switzerland	None for private investors (gains exempt). Professional traders: follows commercial bookkeeping; no rule found	None for private investors (gains exempt, Art. 16 para. 3 DBG)	Not applicable	None	—
United Kingdom	Same-day (s105), then next 30 days (s106A), then s104 pool at average cost. NFTs not pooled	Same order, TCGA 1992	Crypto: one pool per token type across all platforms and wallets. Shares: one pool per company and class	Same-day; 30-day forward only, gains and losses	No
United States	Specific identification if adequately identified; otherwise FIFO (FAQ 39–41). Average cost not listed	Specific identification or FIFO; average basis only for fund (RIC) shares and dividend reinvestment plans	Crypto: per wallet or account from 01-01-2025. Shares: per lot; average basis per account	Wash sale (§1091): 30 days before or after, stock and securities only; not crypto	Not as a method. Specific identification can select the newest lot

Effect on a FIFO ledger#

Country	Does a FIFO lot ledger give the right tax figure?	What must be computed in addition
Australia	Yes, where specific units cannot be identified	50% discount for units held 12 months or more; market value at 01-07-2027 per lot for the reform
Canada	No	ACB average per identical property; superficial loss per s.54 on crypto and shares, with the denied loss added to ACB; 50% inclusion
France	No	Crypto: P, A and V for the whole household at each sale. Shares: PMP per security
Germany	Only for crypto where FIFO is run per wallet, and for securities in collective custody	Per-wallet lot queues and the method chosen per token per wallet; FIFO holding period even where average cost sets value
Indonesia	Not applicable: no gain is taxed	Gross value per sale by platform type: 0.21% or 1% (PMK 50/2025); 0.1% on IDX share sales (PwC summary)
Ireland	Yes for shares	Four-week rule: match sales to shares bought in the prior 4 weeks first, and restrict losses on re-buys within 4 weeks after
Netherlands	No. FIFO gains are not the tax base	Net wealth at 1 January for Box 3; year-start and year-end values plus the year's purchases and sales for the actual-return route
Nigeria	Method not prescribed	USD cost per lot; USD gain converted at the CBN/NAFEM rate on the sale date
Singapore	Yes, for taxable (trading) gains; capital gains are not taxed	Block LIFO
South Africa	Yes on capital account: FIFO is allowed (IT3(c) clarification)	Paragraph 42 45-day rule on crypto and shares; one annual exclusion per person
Switzerland	Not applicable for private investors: gains exempt	Professional-trader test; cantonal wealth tax on 31 December holdings
United Kingdom	No	Same-day, then next 30 days, then s104 pool per token across all wallets, for crypto and shares (CRYPTO22200, ICAEW, HS284)
United States	Only for FIFO run per wallet or account from 01-01-2025, with no specific identification	Per-wallet basis allocation as at 01-01-2025; specific identification where elected (Notice 2025-7, Notice 2026-20); wash sale for securities only

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