I’ve been using Koinly for the last 4 years using the Universal and HIFO method. Starting 2025, I want to use the FIFO method (with the mandated wallet-tracking method). On January 1, 2025, I plan to change that option in my Koinly account setting from HIFO to FIFO for the tax year 2025. Provided I meet the Proc 2024-28 Safe Harbor requirement, am I immune from any accounting errors that change (HIFO to FIFO) might affect my previous years’ tax?
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I am curious about this as well. Also, Koinly says that my account will automatically migrate on Jan. 1, 2024. Does this mean that my account will automatically change to wallet based tracking and FIFO, or do I have to make either or both of these changes?
Hi @peacew6 and @Brian_Rogers
Check out Migrating to wallet-based cost tracking under new IRS guidance (USA only) for more information.
You can keep using the cost basis method you have been using, however, if you wish to change it for 2025, you should override the cost basis as explained in Settings > Cost basis method overrides.
Also, as the article mentions, the migration will go through mid-Jan. You do not need to toggle wallet-based cost tracking on at the moment.