I am based in the USA and own two stocks from the same company, one that I bought at a price of $50, and one that I bought at a price of $70. I have held each one for over a year, to avoid short-term capital gains tax that I would have to pay when selling. The current stock price is $80. I want to sell one of them. Which should I sell?
- Sell the one I bought at $70, in order to minimize the amount of capital gains tax I'll have to pay.
- Sell the one I bought at $50, as the stock price might continue to increase, and by selling the $70, I would have even more capital gains to pay when I eventually sell the $50 later.
- Makes no difference which one I sell, as I'll have to pay the capital gains on both eventually?