Bitcoin : Tax season: FIFO vs LIFO

Bitcoin : Tax season: FIFO vs LIFO

Tax season just started in Australia… Using []( I get a significantly higher tax bill using FIFO compared to LIFO, and I think it would be unfair to force me to use FIFO. The reason FIFO is much higher is because of the following kind of trade:

– bought bitcoin & litecoin mid 2017

– alts are mooning in december. decide to sell litecoins for other alt

– no LTC/ALT pair, need to convert to BTC first. LTC > BTC << pay capital gains on sale of litecoins. fair enough

– sell BTC that I just purchased to get some ALT

Now I have to pay capital gains on the sale of bitcoins. It’s clear that the bitcoin I used is the one I just purchased (so LIFO makes sense). But if I have to report it as if the bitcoins I sold were the ones from mid 2017 (FIFO), at december prices I take a big hit.

Anyone in a similar situation? I would appreciate some advise!

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Author: capitan-garfio

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