[[ I buy a lot of stocks/options that I average in and out of: Meaning I buy 500 shares of Dell on two different dats and then sell 400 on day 1, 400 on Day 2 and 200 on Day 3. I use TurboTax. Do I determine what shares I sell or is there an IRS rule telling me what shares I have to sell 1st, 2nd and 3rd? ]]If you are dealing with individual stock, you have only two options with respect to your basis:1. FIFO (First In First Out); or2. Specific IdentificationYou can read more about the Specific Shares method in the Taxes FAQ area. I'm sure that you already know about the FIFO method. We also discuss this in much greater detail in TMF Investment Tax Guide. Check it out.[[ Also, how do you allocate the commissions on these types of sales? Do you just divide it by 3?]]No...each sale (or purchase) had it's own commission, and that commission will attach itself to those shares sold (or bought). Unlike mutual funds, you can't "average" your cost basis when you are dealing with individual shares of stock.TMF TaxesRoyWant to learn more about taxes and investing? Then we have a deal for you!! The Motley Fool Investment Tax Guide is now available through Fool Mart. Be the first one on your block to own this masterpiece. It'll help you with your 1998 taxes, and it's never to early to start planning for your 1999 taxes. So just click on this link (http://www.foolmart.com/market/product.asp?pfid=MF+013+I) to read more about this amazing collection of tax information. (Apologies for the shameless plug…but it is a pretty good book…if I do say so myself). In addition, if you would like to visit the Taxes FAQ (Frequently Asked Questions) area, click on http://www.fool.com/school/taxes/taxes.htm and you'll be right at the home page. Check it out. Finally, if you need to get to the IRS web site, click on http://www.irs.ustreas.gov to go directly there.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra