Cost basis and lots

Cost basis is the amount you paid to purchase an asset plus any additional costs such as broker's fees or commissions. When you sell an asset, its cost basis is compared to the sales proceeds to determine your capital gain or loss.

Cost basis records the amount you paid for each purchase of cryptocurrency. The cost basis for Fidelity Crypto^® positions is recorded on a first in, first out (FIFO) basis. This means that you sell your crypto in the order in which you purchased your crypto.

A tax lot is a record of what you paid for a certain amount of an asset at a certain time. Each purchase is a new tax lot. Tax lots are used to determine total cost basis. If you have a single tax lot, this amount is also your total cost basis. If you paid in multiple purchases, you'll enter multiple tax lots.

The cost basis for Fidelity Crypto^® positions is recorded on a first in, first out (FIFO) basis. This means that your executed sell orders are paired to tax lots in the order in which you purchased your crypto. Check with a tax expert to determine how crypto transactions could affect your taxes. Fidelity does not provide legal or tax advice.

When you sell an investment that has lost money in a taxable account, you can generally claim a tax benefit. The wash sale rule prohibits investors from claiming the tax benefit when selling at a loss and buying the same (or substantially identical) investment within 30 days before and after the sale date. The rule applies to most of the investments you could hold in a typical brokerage account, including stocks, bonds, mutual funds, exchange-traded funds (ETFs), and options.

Digital assets like crypto are not subject to wash sale rules. Tax regulation can change, and you should always consult with a tax professional to understand any possible tax implications. Fidelity does not provide legal or tax advice.