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.