📝 Description
Waltio supports three tax calculation methods to determine the acquisition cost of your cryptocurrencies when selling: FIFO, LIFO, and Average Cost (ACB — Adjusted Cost Base). The applicable method depends on the tax regulations of your country of residence.
⚠️ Warnings
This article does not apply to countries where Waltio automatically selects and enforces the calculation method (France, Belgium, Spain, Italy, Germany). If you reside in one of these countries, please refer to your country-specific article.
The applicable method depends on your country of tax residence. If you select the International profile in Waltio, you can freely choose any method.
Once a method is applied, it is generally recommended to keep it consistent from year to year.
The method selected in Waltio directly impacts the calculation of your capital gains or losses.
Default accounting methods are provided based on general local guidelines for informational purposes, not as formal tax advice. Crypto tax laws change frequently. You are solely responsible for your tax reporting accuracy. Please consult a local tax professional to confirm the correct method for your specific situation before finalizing your report. Waltio is not liable for tax penalties or miscalculations resulting from the chosen method.
Calculation Methods
FIFO — First In, First Out
The FIFO method considers that the first assets purchased are the first ones sold.
Example:
You buy 1 BTC at €10,000 in January.
You buy 1 BTC at €30,000 in March.
You sell 1 BTC at €40,000 in June.
👉 With FIFO, the acquisition cost used is the one from the first purchase (€10,000). The capital gain is €30,000.
LIFO — Last In, First Out
The LIFO method considers that the last assets purchased are the first ones sold.
Example (same scenario):
👉 With LIFO, the acquisition cost used is the one from the last purchase (€30,000). The capital gain is €10,000.
Average Cost (ACB — Adjusted Cost Base)
The Average Cost method calculates an adjusted cost base from all your purchases. The cost base is recalculated with each new purchase by dividing the total cost of all held assets by the total number of units.
Example (same scenario):
Adjusted cost base = (10,000 + 30,000) / 2 = €20,000 per BTC
You sell 1 BTC at €40,000.
👉 With Average Cost, the capital gain is €20,000.
Universal vs Per Wallet
For the FIFO and LIFO methods, two operating modes are available in Waltio:
Universal mode
The calculation is performed across all your wallets and platforms as if they were a single portfolio. All purchases are grouped into one pool, regardless of where they were made.
Example:
You buy 1 BTC at €10,000 on Binance.
You buy 1 BTC at €30,000 on Kraken.
You sell 1 BTC on Kraken.
👉 With universal FIFO, the acquisition cost used is €10,000 (first purchase across all platforms).
Per wallet mode
The calculation is performed separately for each wallet or platform. Each platform has its own purchase history.
Example (same scenario):
👉 With per-wallet FIFO, the acquisition cost used is €30,000 (first purchase on Kraken only).
💡 Additional Information
The choice between universal and per wallet can significantly impact the amount of your capital gains. Consult a tax advisor if in doubt.
To learn more about the global FIFO method, see the article FIFO Global.