Here is something to ponder while we wait for our

Here is something to ponder while we wait for our stock to reach 1, 2, 3 dollars or more per share. The GOP tax bill will require cost basis to be determined according to the FIFO method. For example, lets say you bought a stock at .23 pps and over the months/years added additional shares at say, .30 to 1.25 with an overall average cost of say, .70 . The stock appreciates to 3 pps and you sell ten thousand shares at the 3 dollar price. Under FIFO rules your cost basis would be whatever you paid for the first 10,000 shares you purchased and lets say that average purchase price was .40. Your gain would be 3.00 - .40 = 2.60 x 10,000 = 26,000 . Under existing rules your gain would be less and depending on how many shares you bought at the upper price (1.25), substantially less.

Your proceeds are not going to be effected but your taxable long term gain is going to be higher for those people that dollar cost average or purchase shares on dips over a long period of time and then on occasion sell some shares to get cash or to take some profits off the table.

Somewhat ironic that the GOP proposal penalizes those of us that enter emerging markets, provides some of the resources that startups and "emerging" companies need and then get whacked by a rule change that is purly a tax revenue ploy.