Are Long Term Capital Gains Taxes based on the first holding date of purchase even if other purchases were made throughout the year?

[vict-mitchell]

I'm going to use an easy example to get at my question. Let's say I purchased $100 of a stock on January 1, 2016 (not in a tax-sheltered account, in a regular brokerage account). I used the dollar-cost averaging approach so I purchased another $100 of that same stock in February, March, April...all the way to December 1. 

By December 1 I bought $1200 of this stock. Due to returns, the value has increased to $1500. Now I want to sell it, but I want to wait until it will be a long-term capital gains tax, not a short-term capital gains tax. 

If I sold total $1500 on January 2, 2017 would that be subject to long-term capital gains for the entire $1500? Or would it be long-term capital gains on the first $100 I bought on January 1 (plus whatever return I made on that $100) and short-term capital gains on the remaining $1100 (plus whatever return I made on that $1100) that I bought in less than one year?

Thank you in advance for your help on this!

[fanfare]

If you purchased after 2011, your broker will break it out for you. Just report what is on your consolidated 1099-B.

[fanfare]

you can sell the part bought more than a year ago. That would entail more commissions to unload it all. FIFO is the default accounting.

[TomYoung · Accepted solution]

The holding period is determined on a lot-by-lot basis.  In your example only the first purchase would be long term.

Tom Young