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<<In the FIFO method you report a higher gain and pay more tax on it,>>

Right...because in a rising market, the first shares that you purchase will have the largest gain attached to them.

<< but in the Specific ID method you report less of a gain and pay less tax.>>

Right...because we "specified" shares that we purchased just recently...with very little gain attached to them.

<< I want to know if your gains all together are the same as when using the Specific ID method.>>

Sorry...but I don't understand what you are asking. If you are asking about the TOTAL gains (assuming that you sold ALL of the shares), the gain would be exactly the same either way. But in the example that you referenced, we were only selling PART of our DRIP shares.

<<I see that you report a return of less, but are you still making the same amount and only paying less income tax on it?>>

Yup...exactly. You have the same amount of cash in your britches after each of the sales, but by using the specific ID method, you'll owe less in taxes to Uncle Sammy.

Any better??
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