# Tax Lot

> A specific batch of crypto bought at a known price and date, used to calculate gains on disposal.

Canonical URL: https://fudfomo.co/glossary/tax-lot
Source: What The Block! Dictionary v1.0 (last updated 2026-04-25), browsable at https://wtb.fudfomo.co.

## Definition

A tax lot is a single batch of an asset acquired together. Each lot has its own cost basis and acquisition date. When you sell or swap part of your holdings, tax software needs to know which lot the units came from to calculate the gain or loss.

Common methods include first-in-first-out (FIFO), last-in-first-out (LIFO), and specific identification. The choice can have a real impact on your tax bill.

## Regulatory context

Some countries require a specific accounting method. Others let you choose, but require consistency over time.

## Related terms

- [Capital Gains](https://fudfomo.co/glossary/capital-gains): The profit you make when you sell an asset for more than you paid. Usually taxable.
- [KYC](https://fudfomo.co/glossary/kyc): Know Your Customer. The identity checks an exchange runs before letting you trade.
- [CEX](https://fudfomo.co/glossary/cex): A centralised exchange. A regulated platform where you buy and sell crypto using an account.

## See the full catalogue

What The Block! covers more than 2,000 plain-English crypto terms, delivered as embeddable hover-state tooltips for crypto exchanges. https://wtb.fudfomo.co