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

What is a 401(k)?

Learn more about the definition of a 401(k) plan with information from H&R Block. We break down 401(k) rules with easy-to-follow explanations and lists.

Reporting Business Income Or Loss

How should you report business income or a loss? Learn more about self-employment income, hobby loss rules and other tax issues at H&R Block.

Second Home Taxes

Learn more about second home tax deductions and taxes on selling a second home with the tax experts at H&R Block.

What Is the Secure Act and How Will It Affect Your Retirement Savings?

In this article, the tax experts at H&R Block will walk you through the Secure Act retirement bill and any changes that may affect your retirement savings.