I'm not clear on how US capital gains tax would be evaluated in the following situation.
Let's say I buy 100 units of stock in company X on January 1st and it's valued at $50/share. If I sell any of that stock in that calendar year, I would be subject to short term capital gains tax. If I wait until next calendar year, it's subject to long term capital gains tax. So far so good.
Now let's say company X is doing well and in June it's valued at $70/share and looks like it will continue growing. So I purchase another 100 shares in June.
Next year comes around and in March of that year it's valued at $80/share and I decide I want to sell half of my stock in company X. So I sell 100 units.
How exactly is that tax calculated on this? How does anyone know "which" of the 200 shares I sold? Or would I have to choose specific shares to sell? Could I sell a mix, e.g. 50 of each and pay varying tax on each group of 50?
Submitted August 07, 2020 at 05:41PM by Myllokunmingia https://ift.tt/33CBSMd
