irs-asset-fifo-calculator 1.0.0

FIFO-based IRS Form 8949 capital gains calculator for assets.

IRS asset FIFO calculator

Tax calculator that tracks capital gains from multiple purchases and sales. This program uses a CSV file as input.

The input file's default name is "asset_tx.csv", but any name can be used, using this name in the --input-file= flag of the python call. The file must have the following columns and headers: Tx Index, Date, Asset, Amount (asset), Sell price ($), Buy price ($), Type

Short tutorial demo: simple tax calculation

Table of Contents

• What this project does
• FIFO in one paragraph
• Installation
• Quick start
• Technologies
• Development
• Contributing
• Contributors
• Author
• Change log
• License

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What this project does

This repository implements a small Python tool to calculate IRS-style capital gains using the FIFO (First In, First Out) method and produce Form 8949–style output.

Given a CSV of asset transactions (buys, sells, exchanges, transfers), the library:

1. Groups related rows by Tx Index into logical “blocks” (one trade).
2. Parses each block into:
   • Buy side (what you acquired)
   • Sell side (what you disposed of)
   • Fee side (in up to one asset different from the buy side asset and sell side asset)
3. Maintains a FIFO ledger of “lots” for each asset (amount, price, cost basis, date).
4. For each sale, consumes the oldest lots first to compute:
   • Cost basis
   • Proceeds
   • Gain or loss
5. Writes the result as rows suitable for Form 8949.

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FIFO in one paragraph

Under FIFO, the earliest purchased units are considered sold first. If you bought 10 NVDA on January 1 and 5 NVDA on February 1, then sell 12 NVDA on March 1, the sale is treated as:

• 10 units from the January lot, and
• 2 units from the February lot.

Each slice gets a proportional share of the total proceeds, and its own cost basis and gain/loss. This tool automates that book-keeping and emits one Form 8949 row per “slice”.

For a more detailed explanation (with tables and numeric examples), see docs/fifo_overview.md.

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Quickstart

Download repo

In an Ubuntu/WSL terminal:

sudo apt install -y git
git clone https://github.com/elliottbache/irs_asset_fifo_calculator.git
cd irs_asset_fifo_calculator

Quickstart (recommended): Local (Ubuntu/WSL)

The transactions file should first be placed at the repo root and called asset_tx.csv.

In an Ubuntu/WSL terminal:

make setup
make run

That's it, you’ve run the FIFO tax calculator! Keep reading for a more in-depth explanation of what just happened.

Tutorial mode and expected results

Optional: compare your results to the expected tutorial results. If you want a deterministic “known-good” run you can compare against (useful for demos, onboarding, and quick sanity checks), run the tax calculator with the example input file and compare the produced Form 8949 to the committed expected file.

make tutorial

Tutorial example files live here:

• examples/asset_tx.csv
• examples/form8949.csv

Note: the make command calls bash scripts/compare-tutorial-results.sh. This script may lose its permissions depending on the method of cloning/downloading the repo. If it does lose its executable permission, it can be set with

chmod u+x scripts/compare-tutorial-results.sh

Quickstart (alternative): Docker

Use this if you prefer Docker. Otherwise, use the local quickstart above.

The transactions file should first be placed at the repo root and called asset_tx.csv.

Launch Docker daemon

On WSL:

sudo service docker start

On Ubuntu:

sudo systemctl start docker

Start a docker container

docker start <name>

Then run

docker compose up --build

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Installation (manual, for development or troubleshooting)

If you used Quickstart (make setup), you can skip this section.

This package is intended for use in Ubuntu/WSL. All installation and execution instructions are for these distributions.

The quickest and easiest way to install the various components of this package can be found in Quickstart. The following steps are for manual installation.

Create a Python virtual environment with dependencies (skip this if using Docker)

System requirements (Ubuntu/WSL):

• Python: Python 3.11 + venv support (python3.11, python3.11-venv)

These are installed via:

• make deps (runs the scripts below), or
• bash scripts/install-python-deps.sh

Note: if downloaded with wget or as a zip file, the permissions may be lost on the scripts. In this case, you may need to change the permissions with chmod +x scripts/install-python-deps.sh.

Prefer zero system dependencies?

• Use Docker instead (see Quickstart (alternative): Docker below).

Create and activate a venv

python -m venv .venv
. .venv/bin/activate 

Install rest of dependencies in venv

pip install -U pip
pip install -e .[dev]

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Execution / Usage (manual, for development or troubleshooting)

If you used Quickstart (make setup), you can skip this section.

This program was developed with Python 3.11.14. It is intended for use in Ubuntu/WSL.

Option A: No Docker

Run demo

From within the Python virtual environment (see Virtual environment):

irs-fifo-taxes

Input file and output file flags are available for running in CLI. e.g.

irs-fifo-taxes --input-file=my_special_file.csv --output-file="my_directory/form8949_2025.csv"

Option B: Docker

Docker users: see Quickstart (alternative): Docker.

Compare your output to the expected tutorial results

Tutorial mode is designed to be deterministic so you can validate behavior by comparing your results against committed “golden” results.

Run tutorial manually

A tutorial case is available to ensure that the Form 8949 is being created correctly. To create the corresponding form, the following should be run from the repo root:

irs-fifo-taxes --input-file=examples/asset_tx.csv --output-file=form8949_example.csv
bash scripts/compare-tutorial-results.sh

If there are no executable permissions on the script, they can be set with

chmod u+x scripts/compare-tutorial-results.sh

Compare using the provided script

From the repository root:

bash scripts/compare-tutorial-logs.sh

Expected results (golden files)

The expected tutorial logs are stored in the repository at:

• examples/asset_tx.csv
• examples/form8949.csv

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Technologies

This project is built with:

Core

• Python 3.11
• pandas (CSV parsing and DataFrame transforms)
• NumPy (numeric helpers)

Developer tooling

• pytest (tests)
• flake8 (linting)
• mypy (static type checking)
• pre-commit hooks (see .pre-commit-config.yaml)

Documentation

• Sphinx (API and user docs)
• MyST Markdown support
• Read the Docs (hosted documentation)

Environment & automation

• Make (helper commands: make setup, make run, make tutorial, etc.)
• Docker / docker-compose (optional containerized environment)
• GitHub Actions (CI pipeline)
• codecov (test coverage reporting)

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Development

Demo GIF

The .cast file is available for easy regeneration of the GIF file. The following commands were used to create the GIF from a clean folder.

asciinema rec -i 3 --overwrite -t "irs-fifo-tax demo" -c \
"tmux new-session -A -s tlscc-demo" demo.cast
git clone https://github.com/elliottbache/irs_asset_fifo_calculator.git
cd irs_asset_fifo_calculator
make tutorial
ls -latr
cat form8949_example.csv
exit
exit
asciinema-agg demo.cast demo.gif
rm -rf irs_asset_fifo_calculator

The resulting .cast and .gif files must then be copied into the docs/ folder of the original git clone folder.

Building the docs in PyCharm

In order to create Sphinx documentation from the docstrings in PyCharm, a new run task must be created: Run > Edit Configurations... > + (top-left) > Sphinx task. In the window that opens, name the Sphinx task in the "Name" field, select "html" under the "Command:" dropdown, select the docs folder in the root folder in the "Input:" field, and select the docs/_build folder in the "Output:" field. If the docs or docs/_build folder do not already exist, they will perhaps need to be created. The Sphinx documentation can now be created by going to Run > Run... and selecting the Sphinx task name.

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Contributing

To contribute to the development of IRS asset FIFO calculator, follow the steps below:

1. Fork IRS asset FIFO calculator from https://github.com/elliottbache/irs_asset_fifo_calculator/fork
2. Create your feature branch (git checkout -b feature-new)
3. Make your changes
4. Commit your changes (git commit -am 'Add some new feature')
5. Push to the branch (git push origin feature-new)
6. Create a new pull request

For more info, see CONTRIBUTING.md.

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Contributors

Here's the list of people who have contributed to IRS asset FIFO calculator:

• Elliott Bache – [e-mail]

The IRS asset FIFO calculator development team really appreciates and thanks the time and effort that all these fellows have put into the project's growth and improvement.

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Author

• Elliott Bache – [e-mail]

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Change log

• 0.1.0
  • First public FIFO release
• 1.0.0
  • Production-ready release

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License

IRS asset FIFO calculator is distributed under the GPL-3.0 license. For more info, see LICENSE.