When using LIFO method to calculate cost basis for cryptocurrencies (or even stocks), does the "last in" part refer to the last purchase you made PRIOR to the sale of a cryptocurrency (or stock)? Or the last purchase made for the entire tax year?
For example, suppose I made the following transactions in 2019:
January 1st: Purchase 1 bitcoin @ $5000
March 1st: Sell 0.5 bitcoin @ $6000
December 1st: Purchase 1 bitcoin at $9000
Then using LIFO, what is the cost basis for the 0.5 bitcoin I sold in March?
Is it from the purchase I made in January (since that's the last purchase I made before the sale)?
Or is it from the purchase I made in December (since that's the absolute last purchase of the 2019 tax year)?
There's conflicting info out there.
Some people say "Well, you can't sell what you haven't bought yet." (meaning I can't use the bitcoin I purchased in December as the cost basis for the bitcoin I sold in March, since at the time of the sale, I didn't own the December bitcoin yet).
Others say "You have to look at it from the entire year point-of-view", meaning it doesn't matter that I sold in March, I can still use the December bitcoin purchase as my "last in" since it was still made in the current tax year.
Lastly, is there any documentation that spells this out anywhere?
(Before anyone asks, yes, I can specifically ID each and every crypto transaction I've ever made).
Thanks!
