No. of Recommendations: 1
"What would you consider a major reason to track specific lots?"

Apple computer stock has gone from $22/share ($11 split) to $184/share.

If you made a series of purchases over this time, when you sell you can designate any of the shares you want as the ones sold. Would you like your cost to be $11/share? Or $184/share? Or some other figure?

This changes the amount of captial gains taxes you will pay for this transaction. The difference can easily be thousands of dollars.

But if you claim the shares sold this year cost $184, you cannot claim them later as being sold again. So the question becomes do you want to pay the capital gains taxes now? Or some other time? Or if you have a potential loss, would you like to claim it now and write it off against other profits? You can do that.

So this is not your average purchase cost by any means. You can use this to shift income from one year to another as part of your tax strategy.

Of course if the shares have been $10 per for years and paid a dividend, that is a different situation. It depends on the circumstances.
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.