Stocks purchase dates questions

Forum|Forum|1 year ago
August 19, 2024
1 reply
0 views

Questions: Assuming I bought ABC stocks at 2 different dates, say, 1000@ $5 on 1/20/2024 and another 1000@ $10 on 3/20/2024. If I sell 1000 shares later with gain @ $15. I know I can pick either one (purchase date) to sell at the sale time.

Can I change the purchase date I bought before 12/31/2024 or change the date before filing my tax return in 2025 to make the right tax harvesting?

Thanks

pk12_2

Employee

@SLYKTAX , not really. You have to declare/ instruct your broker as to which batch and how many you are selling and then have to use this LIFO or FIFO regime on your return. Else you will be violating perjury jurat.

SLYKTAXAuthor

Not sure you answer my question, I asked:

Can I change from FIFO to LIFO or vise vera before filing the year tax return that is on April the following year.

pk12_2

Employee

@SLYKTAX sorry for the confusion. What I meant is that when you sell the stock(s) you will have to tell the broker which batch you are selling from. You can also choose how many from each block if you want to do that. Once that is done the basis of the stocks is frozen. Thus when you file your return, you recognize the gain/loss and the holding period, based on what you sold through the broker.

Does this make sense ?