Topic: Last in first out (Read 499 times)
Ok, I see where you are coming from. Thanks !!!!!!! But then why does the stock account have to be set up one way or the other?
I believe from an accounting perspective the actual inventory you sell should not matter (when selling physical goods you should always sell in a FIFO basis for the actual goods), but if you use FIFO or LIFO (or specific lot) is merely an entry on your tax forms and on your books.
I don't think that coinbase reports the tax basis of the bitcoin you purchase to the IRS (I may be incorrect on this), so it would be up to you to accurately input the basis based on what method you elect to use (based on what you can use based on tax law).
I honestly don't think bitcointalk is the best place to get tax advice and a tax advisor would probably be a better source of information for this kind of thing
But this is going to matter a lot. This 50 dollars will be deducted out of my account. Do this a few times and your balance will be zero.I don't think that coinbase reports the tax basis of the bitcoin you purchase to the IRS (I may be incorrect on this), so it would be up to you to accurately input the basis based on what method you elect to use (based on what you can use based on tax law).
I honestly don't think bitcointalk is the best place to get tax advice and a tax advisor would probably be a better source of information for this kind of thing
When you buy 1 BTC at $250, then $250 will be deducted from your account. Then when you go to sell 1 BTC at $275 then $275 will be added to your account. They are not offering any kind of futures contract.
I believe from an accounting perspective the actual inventory you sell should not matter (when selling physical goods you should always sell in a FIFO basis for the actual goods), but if you use FIFO or LIFO (or specific lot) is merely an entry on your tax forms and on your books.
I don't think that coinbase reports the tax basis of the bitcoin you purchase to the IRS (I may be incorrect on this), so it would be up to you to accurately input the basis based on what method you elect to use (based on what you can use based on tax law).
I honestly don't think bitcointalk is the best place to get tax advice and a tax advisor would probably be a better source of information for this kind of thing
But this is going to matter a lot. This 50 dollars will be deducted out of my account. Do this a few times and your balance will be zero. I don't think that coinbase reports the tax basis of the bitcoin you purchase to the IRS (I may be incorrect on this), so it would be up to you to accurately input the basis based on what method you elect to use (based on what you can use based on tax law).
I honestly don't think bitcointalk is the best place to get tax advice and a tax advisor would probably be a better source of information for this kind of thing
I believe from an accounting perspective the actual inventory you sell should not matter (when selling physical goods you should always sell in a FIFO basis for the actual goods), but if you use FIFO or LIFO (or specific lot) is merely an entry on your tax forms and on your books.
I don't think that coinbase reports the tax basis of the bitcoin you purchase to the IRS (I may be incorrect on this), so it would be up to you to accurately input the basis based on what method you elect to use (based on what you can use based on tax law).
I honestly don't think bitcointalk is the best place to get tax advice and a tax advisor would probably be a better source of information for this kind of thing
I don't think that coinbase reports the tax basis of the bitcoin you purchase to the IRS (I may be incorrect on this), so it would be up to you to accurately input the basis based on what method you elect to use (based on what you can use based on tax law).
I honestly don't think bitcointalk is the best place to get tax advice and a tax advisor would probably be a better source of information for this kind of thing
Thank you for your reply, there is a big difference. I day trade stocks so let me go at it in this direction. I like to play the market on the way down so here we go down....I buy a coin for 200.00 dollars wanting it to move up. The price goes down. I buy another coin for 100.00 dollars, now the market goes up to 150.00 and I want to sell. The way coinbase has it if I sell, I sell the coin for a 50 dollar loss!! I want to sell the last in first out making 50 dollars not loosing 50 dollars. Presently I have 3 at 234.00 and 1 at 236.25 and at the present time it is 228.20 and I am stuck till things go back up as I must sell the first coin first. If I was last in first out, there would be no problem. I could get coins for the next year and getting the little up swing with last in first out. Your comments and thanks.
The distinction between two individual coins makes no sense. From a trading perspective you bought 1@1 and [email protected] you now have 2 and paid 1.5 for them. If you sell any of the two for more than .5 you still have more than you had before.
If he is in the U.S. (or elsewhere), it could be relevant to be able to choose your tax lots. Eg you realize a loss on some coins vs a gain on others.
From a technical perspective you are right, but from a tax perspective it could matter. At most brokerages you can say "sell the 100 shares lot of INTC I bought on date X, not the 100 shares I bought on date Y." Even though they are fungible, the government views them differently.
Whether the OP had tax concerns, I don't know. They should let you pick.
Since they are indistinguishable, could OP not just make a note that they sold a specific coin in their bookkeeping? In the end its only a database entry on the exchange anyway.
The distinction between two individual coins makes no sense. From a trading perspective you bought 1@1 and [email protected] you now have 2 and paid 1.5 for them. If you sell any of the two for more than .5 you still have more than you had before.
If he is in the U.S. (or elsewhere), it could be relevant to be able to choose your tax lots. Eg you realize a loss on some coins vs a gain on others.
From a technical perspective you are right, but from a tax perspective it could matter. At most brokerages you can say "sell the 100 shares lot of INTC I bought on date X, not the 100 shares I bought on date Y." Even though they are fungible, the government views them differently.
Whether the OP had tax concerns, I don't know. They should let you pick.
The distinction between two individual coins makes no sense. From a trading perspective you bought 1@1 and [email protected] you now have 2 and paid 1.5 for them. If you sell any of the two for more than .5 you still have more than you had before.
I am with coinbase and they tell me they do not provide "last in first out" when selling coins. For those that might not know what that is I buy one coin at one dollar, I then buy one coin for 50 cents. I go to sell a coin, which one do I sell. I want to sell the last in first out. If I sell the first in first out and it is below a dollar I loose. With the last in first out I make a profit as I can buy and sell as the market goes down. Does any one know of any seller that offers this.
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