Is the cost basis for FX cash pair trades FIFO?

IBKR is required to provide the IRS with cost basis detail on covered securities transactions for U.S. persons via the year-end Form 1099.  U.S. persons, therefore, may not change the cost basis on a transaction executed by IBKR and may only change the cost basis on positions transacted elsewhere and transferred to IBKR under the following circumstances:…

The default tax basis methodology for all accounts is First In, First Out (FIFO), but it can be changed on a per day and per symbol basis. To change the default matching method for your account, login to the Client Portal…

VIEW FOREX INCOME WORKSHEET

The Forex Income Worksheet is an annual worksheet that provides income and loss information from your completed currency transactions for the year. The Worksheet lists income and loss from nonfunctional currency transactions, including forex trades, trades in securities denominated in a nonfunctional currency, debit and credit interest and other nonfunctional currency transactions. You can locate your Forex Income Worksheet (if applicable) through Client Portal:…

The Form 1099-B does not include FX gains or losses. The Forex Income Worksheet will provide gain and loss information from your completed currency transactions for the year.

IBKR also offers tax-advantaged account types for clients who are U.S. citizen, such as IRA accounts. Please…