Cost Basis Reporting

Cost basis accounting method

A 'cost basis' is the original purchase price plus any additional costs such as commissions and fees paid for the acquisition of a crypto asset. It's used for tax purposes to calculate capital gains or losses when the same class of crypto asset is later sold.

At OKX, we provide three cost basis accounting methods: FIFO, LIFO, and HIFO.

• FIFO (first-in, first-out) method accounts the 'cost basis' using the crypto assets that you held for the longest period of time when you go to sell, convert, or withdraw crypto assets.

• LIFO (last-in, first-out) method accounts the 'cost basis' using the crypto assets that you most recently acquired when you go to sell, convert, or withdraw crypto assets.

• HIFO (highest-in, first-out) method accounts the 'cost basis' using the crypto assets that you have the highest cost basis for when you go to sell, convert, or withdraw crypto assets.

OKX applies FIFO cost basis method by default to all accounts when account holders on the OKX platform do not select a preference of cost basis accounting methods.

Changes of cost basis accounting method

At OKX, we allow account holders to change their cost basis method for any given tax year. Any changes of cost basis method will affect the calculation of realized gains and losses prospectively. For example, if a user's account is set to the default FIFO method and is later changed to HIFO on June 1, 2025, transactions from that date forward would be accounted for using the HIFO method within our system until the setting is changed again. UserXYZ registers an account with OKX at 1/1/2025 and changes the cost basis method on 6/1/2025 to HIFO. UserXYZ changes the cost basis method again to LIFO on 10/1/2025.

• Transactions occurred on and after 1/1/2025 to 5/31/2025 11:59 PM UTC will be accounted using FIFO method. FIFO is the default 'cost basis' method.

• Transactions occurred on and after 6/1/2025 to 9/30/2025 11:59 PM UTC will be accounted using HIFO method.

• Transactions occurred on and after 10/1/2025 to 12/31/2025 11:59 PM UTC will be accounted using LIFO method.

Tax year 2025 year-end cutoff time

At OKX, we use UTC to timestamp each transaction and the cutoff time for tax year 2025 is on December 31, 2025 11:59 PM UTC. Any reportable transactions occurred on or before December 31, 2025 11:59 PM UTC will be included in 2025 tax forms.