Posted On: 10/13/2014 10:46:05 AM
Post# of 41414
Most brokerages default to first in first out - which sucks for some people in that they really could lose the 20% tax bracket if they do start actively trading at a time like now.
Bottom line - make sure you specify IN ADVANCE what you want to be your particular default method before you start selling.
In my mind, I would believe last in first out (LIFO) would be the most logical to possibly take advantage of the long term tax rule (20%), and I'm guessing that Uncle Sam has had a say in what the brokerage houses offer as the "default" method in order to make the most tax revenue from those who don't know any better...........
Bottom line - make sure you specify IN ADVANCE what you want to be your particular default method before you start selling.
In my mind, I would believe last in first out (LIFO) would be the most logical to possibly take advantage of the long term tax rule (20%), and I'm guessing that Uncle Sam has had a say in what the brokerage houses offer as the "default" method in order to make the most tax revenue from those who don't know any better...........
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