The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Taxes on Investing Profits||Date: 8/4/2011 8:11 PM|
|Author: TMFPMarti||Number: 113846 of 122051|
Yes, you can use specific identification method if you have records to support the cost basis you are using, and your broker can execute a specific identification sale. However, per the IRS, once you choose a method for a particular fund, you must stick with it.
A clarification here. You can use specific identification or FIFO and then later decide to switch to average basis for your remaining shares in a fund. However, as noted, once you use average basis the first time for a fund you must continue using it for all remaining shares in the fund.
See Pub 564.
Rule Your Retirement Home Fool
|Copyright 1996-2015 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|