Article Summary
This article walks you through how to change your cost basis methodology.
River defaults all accounts to FIFO, but you can switch to LIFO or HIFO at any time. However, you also have the option to change your cost basis method to LIFO or HIFO instead.
Step 1: Locate account settings
If you are using river.com, click "Profile & Settings" in the bottom-left corner of your homepage. If you are using the River app, tap your profile icon in the upper-left corner of your homepage.
Step 2: Navigate to "Taxes & Documents"
If you are using river.com, scroll down to "Taxes & Documents" and click "Cost basis method." If you are using the River app, tap "Taxes & Documents."
Step 3: Select cost basis method
If you are using river.com, select your preferred method: FIFO, LIFO, or HIFO. If you are using the River app, tap "Cost basis methodology" and select your preferred method: FIFO, LIFO, or HIFO.
What each method means:
- FIFO (First In, First Out): your oldest bitcoin is sold first
- LIFO (Last In, First Out): your newest bitcoin is sold first
- HIFO (Highest In, First Out): your bitcoin with the highest cost basis (the price you paid) is sold first
Your chosen method will apply to all transactions going forward. River is not able to offer any tax, legal, financial, or investment advice. Please consult a tax professional if you're unsure which method is right for your situation.