This page explains the tax jurisdictions where cryptact supports tax calculations and the crypto cost basis methods applicable in each country.
The cost basis method used for cryptocurrency transactions varies by country and is crucial for your calculations, and cryptact supports a variety of methods.
You can change your cost basis method at any time from the "Settings" page. Please consult your local tax office or a professional tax advisor and make the change at your own discretion.
Cost basis method options:
- FIFO (First In, First Out)
- LIFO (Last In, First Out)
- HIFO (Highest In, First Out)
- Avarage Cost (ACB)
- Periodic Avarage Cost
Country-Specific methods:
Canada
The CRA (Canada Revenue Agency) mandates the adjusted cost basis (ACB) method to calculate your capital gains and losses. If you want to apply ACB, select "Avarage Cost (ACB)" in the ledger settings. When "Average Cost (ACB)" is selected as the Cost basis method and CAD (Canadian Doller) is chosen as the Reporting currency, cryptact applies Canada's calculation rules.
Japan
According to Japan National Tax Agency guidelines, two calculation methods are used to calculate calculate your profit and loss: Periodic Average Cost and Average Cost. Please refer the article What is Periodic Average Cost/Average Cost (Unit Price) for more details.