I'm about to rebalance my portfolio of ETFs. For the selling part, I have several lots to choose from, and I'm not sure if it matters much which one I pick. All lots have long term capital gains.
Here is a hypothetical example:
- Lot 1: $1000 value with gain of 50%
- Lot 2: $1000 value with gain of 40%
- Lot 3: $1000 value with gain of 30%
- Lot 4: $1000 value with gain of 20%
If I want to sell $1000, should I pick lot 4 to minimize tax on capital gains? That seems right, but want to make sure I'm not missing something.