LibraTax cannot provide official legal or tax advice. Please consult with a licensed tax preparer to ensure you file and pay taxes correctly. We’ve partnered with several professionals who you may hire.
We offer the ability for you to choose from a few different cost-basis methods. Cost basis methods are how you would like to report the order of your purchases and redemptions in order to calculate your overall gain or loss. Note: If you are a business user, you may only choose the FIFO method.
- Method #1: The FIFO Method. In this method, the first bitcoins purchased are assumed to be the bitcoins sold. This is the default accounting method; the IRS assumes that you used it unless you have records to support another method.
- Method #2: The LIFO Method. In this method, the last bitcoins purchased are assumed to be the bitcoins sold.
- Method #3: The Libra-Optimized Method. In this method, we analyze all of your bitcoins purchases and any bitcoins you sold. We then assign each sale to a purchase-instance that would generate the biggest lost, or if none, the smallest gain for you.