I understand holding shares for over a year helps lower the tax hit. What if I continually by shares though? Are older shares sold first if I sell to reinvest elsewhere?
053399
5 Replies
M-MTax
Level 12
Dec 14, 2024 2:45:09 PM
Are older shares sold first if I sell to reinvest elsewhere?
Yes. The IRS use FIFO (first-in first-out). LINK: IRS web site
oneeyewhite
Level 1
Dec 14, 2024 5:47:50 PM
I appreciate it!
M-MTax
Level 12
Dec 14, 2024 6:30:11 PM
Note that you can identify certain shares you want to sell BEFORE you sell them BUT the default for the IRS is FIFO.
oneeyewhite
Level 1
Dec 14, 2024 7:30:01 PM
I'm not sure I can access dates of individual stock purchases with Robinhood. I know i can find dates of purchase and sales though.
M-MTax
Level 12
Dec 14, 2024 7:37:58 PM
You would need to tell the broker which shares to sell. I'm not sure how you would do that with an online trading platform/broker.