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Financial Planning / Tax Strategies


Subject:  Re: Stock sales cost basis Date:  4/16/2008  6:00 PM
Author:  TMFPMarti Number:  100447 of 127616

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.

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