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Tax lot accounting

Tracking each purchase of an asset as its own lot with date, quantity, and basis, so sales can be matched to specific lots and holding periods computed correctly.

What is Tax lot accounting?

Tracking each purchase of an asset as its own lot with date, quantity, and basis, so sales can be matched to specific lots and holding periods computed correctly.

Why it matters on your return

Without lot accounting, every crypto sale defaults to first-in, first-out and you lose the ability to choose. With it, you control gain, loss, and holding period per transaction.

Example

A trader holds 40 lots of ETH bought over three years. Lot accounting lets December sales target the high-basis lots for losses while leaving the year-old lots to reach long-term status.

Does my exchange track lots for me?

Only for coins bought and sold on that exchange. Transfers in arrive without lot history unless you supply it.

Last reviewed September 15, 2026. Tax rules change; confirm current law before acting.

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