Accounting question ....selling stocks. (purchase, sell, tax, most)

[Jaggy001]

Suppose you buy the same stock multiple times for example when averaging down over a period of time.

Then you want to start selling blocks of the stock but not all of it. For accounting and tax purposes how does it work? FIFO - first in first out; FILO - first in last out; LIFO - last in first out; or can you just do what you want?

[acegolfer]

I had the same question before and I found the answers through google.

There are multiple methods that you can choose from. However, once you pick the method, you have to stick with it.

One option allows you to designate which block you are selling it. Of course, once you sell the block, you can't use the same block again. If you kept a good record of all the purchase price, this method will probably most tax beneficial.

[broadbill]

Just to clarify acegolfer's response.

The default is FIFO...the only other way to sell stock to to specifically state which block of stocks you are selling. I don't believe FILO or LIFO are options...

[Jaggy001]

Thanks to both of you for your help. FIFO works for me.