FIFO (First-In, First-Out)
Also known as: first-in first-out, first in first out
A cost-allocation method where the first units of an asset you acquired are treated as the first units you dispose of when calculating gains.
Definition
FIFO (first-in, first-out) is a method for working out which units of a crypto holding you sold when you bought them at different times and prices. Under FIFO, the earliest-acquired units are matched to disposals first, which sets the base cost used to calculate your gain or loss. FIFO is the generally accepted method for identical assets in South Africa, and applying it consistently year to year keeps your base cost reconciled.
Example
You buy 1 BTC at R400,000, then later another at R600,000. You sell 1 BTC. Under FIFO, the base cost of the sale is R400,000 (the first BTC you bought).
Jurisdiction notes
- South Africa: FIFO is the generally accepted cost-allocation method for identical crypto assets in South Africa.