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Update cost basis method by tax year

This article applies to US customers only.

CoinTracker's Ultra and Ultra+ plans have a feature that allows customers update the cost basis method for each tax year. This customization is particularly beneficial for customers who want to adjust their tax reporting methods for current or future years without affecting previous calculations. 

For instance, if you've previously used the Highest-in, First-out (HIFO) method, but now wish to explore the implications of the First-in, First-out (FIFO) method for the current tax year, this feature enables such adjustments seamlessly. 

Update for 2026: Your CoinTracker cost basis settings (FIFO, HIFO, LIFO, etc.) must match your exchange's cost basis settings (often referred to as “tax lot relief method”) to comply with new IRS rules and to avoid tax errors. If you don't update these settings, you'll still be able to file, but you may have inaccurate reporting. Learn more about cost basis methods. 

Understand the implications of updating the cost basis method 

Before making any changes, it's crucial to understand the tax implications of altering your cost basis method. Consulting with a tax professional can provide clarity and ensure that your choices align with your tax obligations and goals.

Steps to update the cost basis method

  1. Sign in to CoinTracker, select Account, and navigate to Settings.
  2. Go to the Taxes tab.
  3. Select Cost basis method.
  4. Select the cost basis method next to the year you want to change.
  5. Choose a different method from the dropdown menu.
  6. Confirm your choice and select Save settings.
  7. Repeat for each year you want to update.

Keep in mind that CoinTracker defaults to HIFO. Read more about cost basis methods.

Disclaimer: CoinTracker is provided for informational purposes and is not intended as tax, audit, accounting, investment, financial, or legal advice. For financial, tax, or legal advice, please consult your own professional. See our full disclaimer.

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