Re: FIFO or LIFO ?

"- David Johnson -" <davidj-No8jgTBPOgO6c6uEtOJ/[email protected]> Sun, 14 May 2006 09:56:42 +1000
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<font size=3D"2"><b>On Sat, 13 May 2006 09:41:29 -0500, Bob Gustafson wrote=
</b>
<br />&gt;=20
<br />&gt;=20

FIFO and LIFO are simple rules which may not fit all cases. If you are=20
<br />&gt;=20

talking about multiple purchases of the same company's securities (stock=20

<br />&gt;=20

market purchases), you can handle each purchase as a separate lot. For=20
<br />&gt;=20

tax purposes, it may be convenient to chose one lot or the other when=20
<br />&gt;=20

selling stock in the company. If the sales transaction results in a=20
<br />&gt;=20

loss, you may wish to chose a newer lot so as to make the transaction a=20
<br />&gt;=20

short-term loss. etc. etc.=20
<br />
<br />Bob
<br />Not in Australia.
<br />In .au all stock holdings (both for investment and as trading stock) =
are recorded without certificates.
<br />So for tax purposes, its strictly FIFO.
<br />
(Ok, to be really obscure, you could have multiple accounts with different =
sponsoring brokers,
<br />and then select which parcel to sell buy selecting the broker applica=
ble.
<br />(Almost) nobuddy does that.)
<br />Cheers
<br />David J
<br />
<br />
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