First In, First Out, commonly known as FIFO, is an asset-management and valuation method in which assets produced or acquired first are sold, used, or disposed of first. For tax purposes, FIFO assumes that assets with the oldest costs are included in the income. The remaining inventory assets are matched to the assets that are most recently purchased or produced.
Last In, First Out, the inventory valuation method opposite to FIFO, where the last item purchased or acquired is the first item out. In inflationary economies, this results in deflated net income costs and lower ending balances in inventory when compared to FIFO.
Any positive or negative disposal of a crypto asset that generated a gain or a loss during a short-term period or held in an exchange or wallet for less than one year.
Any positive or negative disposal of a crypto asset that generated a gain or a loss during a long-term period or held in an exchange or wallet for more than one year.
Any income in cryptocurrency generated out of other available transaction classification like:
The total amount of disposals generated a negative value based on trades and transactions as well as the brokers' margin fee costs from margin trading.
Fees paid to exchanges, wallets or miners in the different platforms in order to perform a transaction
Accrual all of the different transactions that are classified as orders or transfers aligned to a specific buy/sell date, source, type, and cost basis.
All airdrops and hardforks combined in one list with the specific acquisition date of each and the cost basis
All airdrops and hardforked coins that were sold or transferred with its source (depot), cost basis, sell date, fees and proceeds
All staking, mining, master node and bounty income combined in one list with the specific acquisition date of each and the cost basis
Disposal of tokens in margin trading activities that generated a gain or a loss with it's corresponding
The US crypto tax report disclaimer establishes the following:
Sources of information
Variability for calculations
All profits generated during activities related to cryptocurrency are taxable with very few exceptions. For more information, go here.
Some banks will require a recount of every single transaction due to Anti-Money Laundering laws in the US.