Home / Lot
Crypto

Lot

A specific purchase of an asset with its own date and cost. When you sell part of a holding, which lot you sell determines the gain; specific identification lets you choose.

What is Lot?

A specific purchase of an asset with its own date and cost. When you sell part of a holding, which lot you sell determines the gain; specific identification lets you choose.

Why it matters on your return

Which lot you sell changes the gain and the holding period. Since the 2025 broker reporting rules, identification has to happen at the account or wallet level, not across your whole portfolio, and you need to identify the lot by the time of sale. Default is first-in, first-out.

Example

You hold 3 ETH bought at $1,500, $2,500, and $3,500. Selling one at $3,000 produces a $1,500 gain, a $500 gain, or a $500 loss depending on which lot you identify.

Can I choose the lot after the year ends?

Not under current rules. Identification must be made no later than the time of sale, and your records need to show it. For broker-held units, IRS Notice 2026-20 extends transition relief through December 31, 2026 allowing identification in your own books and records; it does not cover self-custody wallets.

Last reviewed September 10, 2026. Tax rules change; confirm current law before acting.

Share this article
TALK TO US

Not sure how this applies to you?

A confidential consultation. Tell us what you have, and we will tell you what applies and what it costs.

SCHEDULE A CONFIDENTIAL CONSULTATION

Tell us what you have. We will tell you what applies and what it costs.

Hourly billing, estimated up front, with a deposit applied to the work.

Get started

Fill this out and we will reach out to schedule your consultation.