First-in-first-out (FIFO) inventory reporting is based on the principle that you have an inventory of a product, and each item of your inventory has an associated price (how much that item cost you). When you sell an inventory item, you use the earliest unsold inventory item to calculate the increase or decrease in value.
CryptFolio provides a FIFO report to help you complete end-of-year tax returns for countries and situations where you are treating cryptocurrency as inventory. The FIFO report for a particular currency can be accessed through your Inventory reports, and is broken up into three sections.
CryptFolio currently supports the following transaction types:
- Purchase: The initial purchase of a currency, which can be through exchange or mining. The purchase price is used to value the currency as new inventory.
- Sale: The sale of a cryptocurrency, which can be through exchange of a cryptocurrency (for another cryptocurrency or fiat currency) or purchasing a good or service. This is considered a taxable event.
- Transfer: Transferring currency between accounts, wallets, or addresses. This is not considered a taxable event.
- None: for anything that hasn’t been categorised. These transactions will be not be included in your inventory reports.
When CryptFolio needs to convert one currency value to another on a given date – for example, when calculating your historical values, or your inventory reports – there are many different techniques that the rate can be calculated or selected.
If a transaction has a valuation defined manually, then that value in that valuation currency will be used (and converted through a composite rate if necessary). Otherwise, the value is calculated using a composite rate, as defined below.
What pairs are used?
By default, we use the following priority, to calculate a composite rate for any two given
The Inventory report displays a list of all of the transactions used in your other inventory reports (such as FIFO) in chronological order. This is so you can review your historical transactions and their values, and check that everything has been calculated appropriately.
Currently CryptFolio only supports a single inventory method (FIFO), but in the future we will support other inventory calculation methods. From the Inventory report you can access your Balances report or the FIFO report for your portfolio.
The inventory for a currency, is a sum of all of the transactions in each of your portfolio accounts
For each of your portfolios, CryptFolio provides you with a balance and inventory view of all of your currencies.
For each of the reporting currencies and non-zero currencies in your portfolio, CryptFolio calculates two values for the currency: your balance, and your inventory.
The balance for a currency is the sum of all of the balances in each of your portfolio accounts.
For example, if you had two accounts with the following balances:
Your BTC balance would be calculated as 3.0 BTC.
By clicking on the Balance link, you can view the Balances report for your portfolio in that