When you run the data processing, you will be asked if you would like to select LIFO, HIFO, or FIFO accounting. The tax professionals we consult strongly recommend FIFO as the more conservative treatment. You also need to stick with one tax treatment for all your years of tax returns. You cannot switch from LIFO to FIFO each year. More on Investopedia.

How can I change my cost basis method?

  • In your ZenLedger account, select Settings ⚙️ in the top right corner.

  • In the left-hand sidebar, find Tax Settings.

Did this answer your question?