Posted On: 10/13/2014 10:46:05 AM
Post# of 41413
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...........
(0)
(0)Scroll down for more posts ▼
