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December 14, 2024
Question

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?

  • December 14, 2024
  • 1 reply
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    1 reply

    M-MTax
    December 14, 2024

    Are older shares sold first if I sell to reinvest elsewhere?

    Yes. The IRS use FIFO (first-in first-out). LINK: IRS web site 

    December 15, 2024

    I appreciate it!

    M-MTax
    December 15, 2024

    Note that you can identify certain shares you want to sell BEFORE you sell them BUT the default for the IRS is FIFO.