The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: Stock sales cost basis Date:  4/16/2008  6:00 PM
Author:  TMFPMarti Number:  100447 of 124785

Just out of curiosity, is there any case where there is an advantage using the FIFO method? Seems like Last IN First OUT would alway be tax advantageous?

Not always, just always when the stock moves in only one direction and LIFO doesn't result in a short-term gain. Neither life nor the market works that way.

Case in point, I bought GE then, some time later, bought more when it was trading lower than my first purchase. When I sold part of my holding FIFO was to my tax advantage because it yielded a smaller taxable gain.

Copyright 1996-2016 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us