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Short term vs long term capital gains tax question
Posted on 2/3/20 at 10:09 am
Posted on 2/3/20 at 10:09 am
I know I need to hold a stock at least a year to avoid short term taxes.
My scenario, I purchased a shares pretty much every month last year. Do I only sell what I bought last January. If I sell everything I bought last year will some of it be taxed short term and some long term?
Do I need to keep records of the dates I bought certain numbers of shares?
My scenario, I purchased a shares pretty much every month last year. Do I only sell what I bought last January. If I sell everything I bought last year will some of it be taxed short term and some long term?
Do I need to keep records of the dates I bought certain numbers of shares?
3
Posted on 2/3/20 at 10:29 am to Dr.Funke
quote:Any shares sold after being held less than one year would get taxed at short-term rates. So yes, your January shares would be the only ones with a LTCG tax break.
My scenario, I purchased a shares pretty much every month last year. Do I only sell what I bought last January. If I sell everything I bought last year will some of it be taxed short term and some long term?
quote:That would be advisable
Do I need to keep records of the dates I bought certain numbers of shares?
This post was edited on 2/3/20 at 10:30 am
Posted on 2/3/20 at 10:36 am to NC_Tigah
Thanks, I've done all my trading through Robinhood and there is a record there.
I just wanted to make sure the IRS wouldn't say I sold the most recent shares I bought instead of the ones at the beginning of last year.
I just wanted to make sure the IRS wouldn't say I sold the most recent shares I bought instead of the ones at the beginning of last year.
Posted on 2/3/20 at 11:19 am to Dr.Funke
nm
This post was edited on 5/21/20 at 1:59 pm
Posted on 2/3/20 at 11:35 am to Dr.Funke
quote:
I just wanted to make sure the IRS wouldn't say I sold the most recent shares I bought instead of the ones at the beginning of last year.
The IRS will go by what is reported by Robinhood. I know nothing about that platform. But in Think or Swim, I can specify which shares I want to sell, or rather, which method I want to use (FIFO or LIFO).
Posted on 2/3/20 at 11:39 am to Jag_Warrior
quote:
But in Think or Swim, I can specify which shares I want to sell, or rather, which method I want to use (FIFO or LIFO
Is there a benefit of LIFO?
Posted on 2/3/20 at 12:32 pm to bod312
When you have multiple transactions in a security over a period of years, you may want to specify which shares get sold for tax reasons - as in selling share lots which will incur a smaller cap gains tax hit.
Posted on 2/3/20 at 5:28 pm to Dr.Funke
Your trading platform i.e. E Trade etc...should provide a downloadable copy of all transactions and a end of the fiscal year summation.
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