Go to Jeff Salisbury LWGate Home Page.From: peterson1@iname.com
Subject: stock sale & capital gains tax
Date: Mon, 27 Jul 1998 11:37:44 -0400 (EDT)
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With the changes in the tax law, I have a question about how the new law works. I believe that you pay a lower tax on your gains if you've held the stock for at least 18 months. So let's say you have the following situation. Here are the dates and prices for purchase of XYZ stock. Jan-95 100 shares $12/sh Jan-96 100 shares $15/sh Jan-97 100 shares $18/sh Jan-98 100 shares $20/sh Now in July 1998 you sell 200 shares. In the past I believe that you had several options for determining your per share cost. These were first-in-first-out, last-in-first-out, and an average. But with the last 2 options, you would be including shares that you held for less than 18 months. Does this mean your only option is to use the first-in-first-out method to determine your cost if you want to take advantage of the lower capital gains tax? - --------------------------------------------------- Get free personalized email at http://www.iname.com - -
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