Each country uses different methods for calculating capital gains.

In this article, we will discuss the different methods used to calculate capital gains in the USA, Canada, UK, and Australia.
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In the USA, the most common method used to calculate capital gains is FIFO (First In, First Out). This means that the first assets purchased are considered the first assets sold.

Another method used in the USA is LIFO (Last In, First Out). LIFO assumes that the last assets purchased are the first assets sold.
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In Canada, the most common method used to calculate capital gains is ACB (Adjusted Cost Basis). The adjusted cost basis method is the cost of an asset plus any fees related to it, such as transaction fees.
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In the UK, the method used to calculate capital gains is called Shared Pooling. This method combines the cost of all assets of the same type and calculates the average cost.

In Australia, two methods are used to calculate capital gains tax: FIFO and ACB. FIFO is the default method. ACB takes into account any adjustments made to the original cost of the asset, similar to the method used in Canada.

Koinly supports FIFO, LIFO, ACB, Shared Pool, HIFO, and even less common variations that involve wash sales (such as the FIFO used in Ireland).

You can also override the cost basis method for specific tax years. Learn more
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Koinly uses recommended settings for the Home country that you selected when signing up. If you are in doubt, you can contact your tax authorities and ask them which method you should use to calculate your capital gains and change it on the Settings page.
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For a rundown of the different methods and how they affect your capital gains, refer to this blog post and this one for Shared Pool.