Question 1

What changed with crypto tax rules in 2025?

Accepted Answer

Starting January 1, 2025, the IRS requires cost basis to be tracked separately per wallet and per account (T.D. 10000). Taxpayers can no longer freely identify lots across wallets. Each wallet must maintain its own accounting method (FIFO, HIFO, LIFO, or Specific ID) and disposal ordering.

Question 2

What is a tax lot in cryptocurrency?

Accepted Answer

A tax lot is a record of a specific acquisition of cryptocurrency — the asset, quantity, cost basis (what you paid), and acquisition date. When you sell crypto, the IRS needs to know which specific lot you're selling to calculate your capital gain or loss. Different lots of the same asset can have very different tax consequences.

Question 3

What is tax-loss harvesting for crypto?

Accepted Answer

Tax-loss harvesting is the strategy of selling cryptocurrency lots that have declined in value below their cost basis to realize capital losses. These losses can offset capital gains from other sales, reducing your total tax liability. Unlike stocks, crypto is not currently subject to wash sale rules, making harvesting more flexible.

Question 4

What accounting methods can I use for crypto tax lots?

Accepted Answer

The IRS allows four methods: FIFO (First In, First Out) sells oldest lots first and is the default. LIFO (Last In, First Out) sells newest lots first. HIFO (Highest In, First Out) sells highest-cost lots first to minimize gains. Specific Identification lets you manually choose which lot to sell. Under the 2025 rules, each wallet must maintain its own method.

Question 5

How does LotShift optimize crypto taxes for CPAs?

Accepted Answer

LotShift analyzes tax lots across all client wallets and finds the optimal lots to sell or move. It identifies stranded loss lots (losses stuck behind gains in FIFO order), recommends cross-wallet transfers to unlock them, factors in transfer costs (gas fees), and generates step-by-step movement plans. CPAs can manage multiple clients with separate tax profiles from one firm account.

Question 6

What blockchains and exchanges does LotShift support?

Accepted Answer

LotShift supports on-chain transaction import from 7 blockchains: Ethereum, Solana, Polygon, Arbitrum, Optimism, Avalanche, and Base. It also supports CSV import from Coinbase, Kraken, and Binance exchanges with auto-format detection. Wallets automatically import their on-chain history when created.

Crypto tax lots,
optimized.

Connect wallets

Run optimization

Execute the plan

Stop leaving money on the table.

Crypto tax lots,optimized.

Connect wallets

Run optimization

Execute the plan

Stop leaving money on the table.

Crypto tax lots,
optimized.