IRS Delays Implementation of New Crypto Cost-Basis Reporting Rules
The Internal Revenue Service (IRS) has announced a temporary reprieve for crypto investors regarding new reporting rules that would have mandated a default accounting method for crypto transactions on centralized exchanges.
This change, initially set to take effect in 2024, would have forced investors to use the FIFO (First In, First Out) method to calculate capital gains unless they opted for a different accounting method.
Under the FIFO method, the oldest assets are considered sold first, which can significantly increase capital gains for taxpayers. Critics, including Shehan Chandrasekera, head of tax at Cointracker, expressed concerns that the immediate…
