FIFO between Exchanges / Wallets

Hello,

I understand FIFO but cannot understand why it should use data between exchanges when there is no transfer done between the exhanges.

Example i got 50 entries of gift of 0.01 USDT from Exchange 01 in 2018.

In 2019 i bought USDT 200$ and sold it in 3 days in Exchange 02.

There was no transfer of usdt between both the exchanges.

But my 8949 for 2019 has 50 entries using the 50 entries from 2018. is this correct ?

Hi there! In this scenario, the first USDT you owned would be the cost basis. Where you hold it doesn’t matter - it’s your ownership of it. I hope this helps, let us know if you have any more questions @pg09! Welcome to the community :slight_smile: