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 ?
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.
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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