A cost basis method that lets you choose which lot you are selling, provided records support it. Usually more favorable than first-in, first-out for crypto.
Specific identification lets you decide which units you are selling, so you can sell high-basis lots to reduce gain or long-held lots to get the lower rate. It requires records that show the date, basis, and identification at the time of sale, and since 2025 it is applied per wallet or account.
The default method applies, first-in, first-out within that wallet or account, for that sale. Pre-2025 holdings could be allocated across wallets under the Rev. Proc. 2024-28 safe harbor; that allocation had to be done before the first 2025 disposition or the 2025 return due date.
Last reviewed September 10, 2026. Tax rules change; confirm current law before acting.
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