Identifying Shares Sold

 

Before selling shares, decide which shares will minimize your capital gain or maximize your loss. To minimize gain, you should sell the shares with the highest basis. To maximize loss, you should sell the shares with the lowest basis.

If you don’t identify the shares you sell in writing before selling them, the IRS assumes you used the first-in, first-out method.

Related Topics

Related Resources

Reduce Your AGI Income & Taxable Income Savings

Get tips on reducing your taxable income through deductions, donations and more. Learn how your AGI can affect your tax refund.

Reporting 401K Rollover Into IRA

Learn more about rolling your 401K into an IRA with help from the tax experts at H&R Block.

Is Your Inheritance Considered Taxable Income?

Is an inheritance considered taxable income? Learn more from the tax experts at H&R Block.

Adjusted Basis

Learn more about the adjusted cost basis method of selling shares and get tax answers at H&R Block.