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tayvmai
New Member

Will buying more stock reset my long term capital gains date?

For example, i buy 100 stocks on April 1, 2014, then buy another 100 stocks on June 1, 2014. On April 3, 2015, if i decide to sell all my 200 stocks, will i incur a short term capital gains tax, a short term capital gains tax, or will it be split? 

What if I decide to sell only 199 of my stocks?

1 Best answer

Accepted Solutions
rjs
Level 15
Level 15

Will buying more stock reset my long term capital gains date?

Each purchase lot is handled separately. In your example, you will have a long-term gain on the shares you purchased on April 1, 2014, and a short-term gain on the shares you purchased on June 1, 2014. The sale will be reported as two separate transactions.

If you don't sell all the shares you own, the assumption is that you sold the oldest shares first ("first in, first out," or FIFO). You can modify that assumption by telling the broker which shares to sell at the time you place the order. The broker has to send you an acknowledgement. Some brokers might not accept instructions to sell specific shares.

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1 Reply
rjs
Level 15
Level 15

Will buying more stock reset my long term capital gains date?

Each purchase lot is handled separately. In your example, you will have a long-term gain on the shares you purchased on April 1, 2014, and a short-term gain on the shares you purchased on June 1, 2014. The sale will be reported as two separate transactions.

If you don't sell all the shares you own, the assumption is that you sold the oldest shares first ("first in, first out," or FIFO). You can modify that assumption by telling the broker which shares to sell at the time you place the order. The broker has to send you an acknowledgement. Some brokers might not accept instructions to sell specific shares.

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