Methodology
How the Crypto Tax Calculator works
How Tallivo matches crypto lots (FIFO/LIFO/HIFO) and estimates short- and long-term capital-gains tax at 2025 rates.
The formula
capital gain = proceeds − cost basis of the matched lot
Step by step
- Transactions are grouped per asset and processed in date order, building a queue of purchase lots.
- Each sell is matched against lots by your chosen method: FIFO (oldest first), LIFO (newest first), or HIFO (highest cost first).
- Gain = sale proceeds − matched lot cost. Held ≤ 1 year → short-term; > 1 year → long-term.
- Short-term gains are taxed at 2025 ordinary income brackets (stacked on your other income); long-term gains at 0/15/20% capital-gains rates stacked above that. Net losses offset gains of the other term.
Assumptions & limitations
- Federal capital-gains tax only — no state tax, Net Investment Income Tax (3.8%), or the $3,000 annual capital-loss limit.
- Does not model staking/mining income, airdrops, gifts, DeFi, or wash-sale nuances.
- You must apply your cost-basis method consistently and keep your own transaction records for filing.
Sources
Reviewed and updated for the 2025 tax year. Figures are planning estimates, not a loan offer — this is not financial advice.