Say I make the following transactions:
- Jan 5, 2011: I buy 100 shares of Stock X
- Jan 5, 2012. I buy 100 more shares of Stock X.
- August 1, 2012: I sell 100 shares of Stock X.
If I have this correct, then any gains I get in selling the shares I bought in 2011 would mean I would be paying a long-term capital gains tax, but selling the shares I purchased in 2012 would mean I'm paying the short-term capital gains tax. Obviously, I would want to pay the long-term rate since it's smaller. Are there steps I need to take with my brokerage firm to ensure that I'm selling the older shares at the time of the sell? Or will my brokerage firm figure that in and I can figure it all out at tax time?