Timeline for How does capital gains tax work when buying the same stock at different times?
Current License: CC BY-SA 3.0
12 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Jan 6, 2018 at 2:36 | comment | added | JTP - Apologise to Monica♦ | Well, not immediately. That would be a wash sale, need to replace the shares 30+ days before or after the sale. | |
| Jan 5, 2018 at 20:24 | comment | added | Joe | @AJGoudel It's "bad" from an investor's point of view, as the current law allows you to pick and choose which shares to consider to have sold - meaning you can choose the most advantageous, not so much from an age point of view as from a cost basis point of view. Imagine you have 200 shares of AAPL: 100 that you bought as a child in 1980 at their IPO, and 100 that you bought on Dec 18, 2017 ($2/share higher than today). You might want to sell 100 shares and re-buy them immediately, in order to take a $200 tax loss to offset some taxes, but definitely not prefer to sell the IPO shares! | |
| Jan 5, 2018 at 20:17 | comment | added | JTP - Apologise to Monica♦ | @Joe - I stand corrected. It was removed from the final bill. (A lot of other bad things remained, but forced FIFO was pulled out) | |
| Jan 5, 2018 at 20:12 | comment | added | AJ Goudel | I'm apologize in advance if this is a stupid question, but is the FIFO rule considered bad or good? Wouldn't FIFO be good since you're automatically selling the oldest shares you have thus allowing you to have the highest chance at long term capital gains? | |
| Jan 5, 2018 at 20:05 | vote | accept | AJ Goudel | ||
| Jan 5, 2018 at 20:04 | comment | added | Joe | @JoeTaxpayer See this article for example. FIFO was removed. | |
| Jan 5, 2018 at 19:38 | comment | added | JTP - Apologise to Monica♦ | I will double check. And advise. | |
| Jan 5, 2018 at 19:37 | comment | added | xiaomy | @JoeTaxpayer Thought the FIFO rule was later removed? Did it come back in the final bill? Do you have a source? | |
| Jan 5, 2018 at 19:36 | comment | added | JTP - Apologise to Monica♦ | The new code has a good number of delightful changes that will catch many by surprise. No more "roth recharacterization" is my favorite... | |
| Jan 5, 2018 at 19:35 | comment | added | D Stanley | @JoeTaxpayer Interesting. I wasn't aware of that change. | |
| Jan 5, 2018 at 19:34 | comment | added | JTP - Apologise to Monica♦ | And to be clear, the option for one to choose which lots to sell, for partial sales, is gone. It's first in first out, from here on in. | |
| Jan 5, 2018 at 19:30 | history | answered | D Stanley | CC BY-SA 3.0 |