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TW(Newbie)Newbie
1 June 2021

What is the correct tax rule to be applied when selling shares which you have multiple holdings? Is it first in first out or use a blended cost of investment?

Example -

Buy 1000 @ $1

Buy 500 @ $2

Sell 250 @ $3

Tax ?

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1 replies
696 views
1 replies

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Most helpful reply

BlakeATO(Community Support)Community Support
3 June 2021

Hi @TW

It depends on if you're an investor or a trader.

As an investor, you get to choose which shares you're disposing of in any order you see fit. You can use a FIFO, LIFO, or any combination you see fit.

As a trader, you must value your trading stock (shares) to a different set of rules. If you're a trader, you cannot use the LIFO or a base stock method.

You can read about Identifying when shares or units are acquired (for investors) on our website.

All replies

Most helpful reply

BlakeATO(Community Support)Community Support
3 June 2021

Hi @TW

It depends on if you're an investor or a trader.

As an investor, you get to choose which shares you're disposing of in any order you see fit. You can use a FIFO, LIFO, or any combination you see fit.

As a trader, you must value your trading stock (shares) to a different set of rules. If you're a trader, you cannot use the LIFO or a base stock method.

You can read about Identifying when shares or units are acquired (for investors) on our website.

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