[[a new fool wonders?]]Welcome to the folder, Doc. Glad to see you here.[[ I understand the difference between short term and long term capital gains (hours and hours of reading on this site).]]Good deal. It's a very important concept to get your arms around.[[ I will be adding money to my portfolio on a quarterly basis. When I sell, will I have to separate the shares of a stock I bought more than a year ago, from the ones I bought since? (for taxes)]]If you don't, you will have to recognize the sales using a FIFO (first in, first out) method. Which means that the first shares that you bought (the oldest shares) will be the first shares that you will be deemed to have sold. That may or may NOT be the way that you want to go. While the FIFO method may produce long term gains, it will generally produce LARGER gains. In many cases, you may want to sell the newest shares first.If you do, your only option is to use the specific shares method of accounting for your stock sales. I have a post in the Taxes FAQ area regarding specifying stock. In addition, this has been a hot topic in the folder for the last month or so. So you really should review all of the posts regarding this issue over the last month. You'll really get a flavor for the situation after all of that reading.But first begin with my post in the Taxes FAQ area regarding specifying shares. That'll give you some background and get you started.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. Don't be the LAST one on your block to own this masterpiece, since it's sellin' fast. Remember: 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.
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