Accounting Method Comparison (FIFO vs LIFO vs HIFO vs Average Cost)
See how your tax liability changes depending on lot-matching strategies.
Capital Proceeds & Cost Basis Breakdown
Realized disposal economics for selected tax year
Asset Realization Summary
Annual exclusion of R40,000 applies to net capital gains. 40% of net gain included in taxable income, taxed at individual marginal rate.
Matches oldest purchases first. Default method mandated by SARS, IRS, and most global tax authorities unless specific identification is documented.
Matches most recently acquired lots first. Favorable in persistent bull markets to recognize higher cost bases and delay tax on earlier, cheaper coins.
Maximizes tax minimization by matching the most expensive acquired lots first. Legitimate tax-loss harvesting tactic in jurisdictions allowing specific lot identification.
Averages unit acquisition costs into a continuous pool. Required in Canada (Adjusted Cost Basis) and the UK (Section 104 Holding Pool).
Cryptocurrency Tax Compliance Reference & Guidelines
1. Crypto-to-Crypto Swaps are Taxable
Trading BTC directly for ETH or SOL is not a tax-free exchange. Revenue authorities (SARS, IRS, HMRC, ATO) treat the trade as a disposal of the base asset at fair market value and an acquisition of the quote asset.
2. Staking, Mining & Airdrops
Tokens received from staking, liquidity mining, or promotional airdrops are classified as gross income on the date received. Their fair market value establishes the cost basis when sold in future years.
3. Capital Losses Offset Capital Gains
Realized capital losses on crypto can be used to offset capital gains in the same tax year. Under SARS rules, net losses carry forward indefinitely to offset future capital gains.