FIFO vs LIFO issue? Koin.ly glitch?

My 2021 tax reports differ a lot based on FIFO and LIFO and there’s no explanation.

On the 2021 FIFO tax report, it says I have $149,746 in net gains. All from short term capital gains tax.

On the 2021 LIFO tax report, it says I have $137,284 in net gains. $89,015 from short term capital gains and $48,269 from long term capital gains?

How can my LIFO have more long term capital gains than my FIFO? I think there is something wrong with my tax reports or Koinly because this isn’t correct at all.

I purchased the bulk majority of my cryptocurrency in late 2019/early 2020. I have been taking profits throughout this bull cycle so far (mostly late 2020 til now). I have been buying on dips throughout this bull cycle.

So if I am using FIFO, how is it possible that the 2021 tax report shows that all my capital gains are short term, not long term? It should be selling the late 2019/early 2020 cryptocurrency and most of those I’d say would qualify as long-term capital gains.

On the other hand, why does LIFO show long term capital gains in the 2021 tax report? If I bought on dips, those cryptos should be sold first. However, it’s showing more long term capital gains than FIFO.

I think FIFO and LIFO is completely reversed and glitching on koinly or something because this makes absolutely zero sense so someone please help with this!!! If you can help me figure this out, I will even provide a very good tip in crypto.

This might seem strange but can happen.

If you are using FIFO, Koinly will always choose your oldest asset when making a disposal. In your case, all assets are being disposed of before they reach the 1 year holding period so all of your gains are short-term.
With LIFO, you are always disposing of your most recently acquired assets which means that your older assets are sold last and have therefore been held for more than 1 year once they finally get sold.

Also, each transaction has a ‘Cost Analysis’ section which will show you exactly which acquisition lot is being disposed of. This summary is extremely helpful when looking into things like this.

Hope this helps - Let me know if something still seems to be off and I can take a look :slight_smile:

Best regards,
Petur

Hi, where is the cost analysis section? I downloaded the “complete tax report” document and can’t find it. Can you screenshot?

@darkhound173
It’s shown for each transaction on the Transactions page like this:

From the cost analysis section, it shows the acquisition lot that’s being disposed right here: Screenshot by Lightshot

Is there a way I can see what acquisition lots I have currently and the holding period for each lot of every cryptocurrency I’m holding? I want to know exactly how many X days I have to wait until I can sell to get the long term capital gains tax rate so this would help a lot.

Or is the only way I can see this holding period when I look at the cost analysis section after I sell?

We don’t currently show the holding periods in the dashboard although we are planning to add this.

You can still get this information by manually adding a Withdrawal of your coins. You can then look at the Cost Analysis of this “fake” transaction to see what the holding periods would be.
You can then just delete the transaction.

This is obviously not a great solution but can be helpful until we are able to show holding periods on the dashboard :slight_smile:

Best regards,
Petur

Hi, wanted to follow up

This just happened to me, I was getting the same results in the capital gains reports. I went back through a large number of transactions and found I had broken chain of custody because I didn’t include transfers to and from a ledger nano a year ago and transfers to and from an exchange I decided not to use. Once I uploaded those transactions, the long term capital gains were all fixed. Might be an answer?..