Odaily Planet Daily News: The US Internal Revenue Service (IRS) has issued a temporary relief measure expected to benefit CeFi exchange users by 2025. This relief measure addresses concerns raised by the final version of Rule 6045 on custodial brokers, which will take effect on January 1, 2025 and requires the use of first in first out (FIFO) accounting methods for digital assets, unless preferred methods such as highest in first out (HIFO) or Spec ID are selected. Shehan Chandrasekera, head of tax strategy at Cointracker, explained the issue, emphasizing that "as of January 1, 2025, almost all CeFi brokers are not yet ready to support Spec ID." This lack of preparation will force many cryptocurrency holders to default to FIFO accounting, which may lead to higher tax burdens during asset sales. He described, "In a bull market environment, this can be disastrous for many taxpayers as you unintentionally sell the assets you purchased earliest (often with the lowest cost base) while unknowingly maximizing your capital gains The temporary relief from the US Internal Revenue Service allows taxpayers to continue using their own records or tax software to identify specific units being sold. The exemption period is only applicable to CeFi transactions from January 1, 2025 to December 31, 2025. After this date, taxpayers will need to formally choose an accounting method with their broker. Chandrasekera also emphasized the importance of synchronizing tax software with broker settings. （(Bitcoin.com)）
