LIFO (Last-In, First-Out)
Also known as: last-in first-out, last in first out
A cost method where the most recently acquired units are treated as the first disposed of — not generally accepted for crypto in South Africa.
Definition
LIFO (last-in, first-out) matches the most recently acquired units to a disposal first. In rising markets LIFO tends to report smaller gains than FIFO. While used in some jurisdictions and accounting contexts, LIFO is not the generally accepted approach for identical crypto assets under South African practice, where FIFO or specific identification is expected.
Example
You buy 1 BTC at R400,000, then another at R600,000, then sell 1 BTC. Under LIFO the base cost is R600,000 (the most recent purchase), versus R400,000 under FIFO.
Jurisdiction notes
- South Africa: LIFO is not the generally accepted cost-allocation method for identical crypto assets in South Africa; FIFO is preferred.