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Suppose I hold 100 shares of XYZ company on March 1st. I bought these shares at least 1 year ago. And I buy 10 more shares of XYZ company on March 10th.

Now I hold 110 shares of XYZ company. Suppose I was paid dividends on March 20th by XYZ on 110 shares of XYZ.

Now if I sell 10 shares of XYZ, the latest lot of XYZ shares that I bought on March 30th. Clearly, those 10 shares do not meet the qualified dividends requirements.

Do the original 100 shares of XYZ also not meet the holding period requirement because of the sale on March 30th? I never sold the 100 shares of XYZ that I originally bought. I only sold those 10 shares that I bought on March 10th.

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No, every share is considered by its own for its holding period and thereby if it is qualified or not qualified.

When you sell any amount, you can define which specific lot you are selling, one by one if you care to, or you use FIFO or LIFO or whatever you want.

Depending on your choices, it might become a nightmare to track that, but you can do it whichever way you like.

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