Specific identification
Also known as: spec ID, specific lot identification
Choosing exactly which acquired units (lots) are disposed of, rather than applying an automatic rule like FIFO, to set the base cost.
Definition
Specific identification lets you nominate the precise units (lots) being disposed of, so you control which base cost applies. Strategies like HIFO depend on it. It generally requires detailed records linking each disposal to a specific acquisition. South African practice for identical crypto assets leans on FIFO, so specific identification should not be assumed without a defensible record trail.
Example
You hold three separate ETH lots. When you sell 1 ETH you nominate the highest-cost lot, recording exactly which acquisition is being disposed of.
Jurisdiction notes
- South Africa: FIFO is generally expected for identical crypto assets in South Africa; specific identification needs strong records.