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I have been continually purchasing Ford stock since last August, down through the lows in January and February, and as recently as March. I don't plan on selling it until it is considered long-term, which I read is a year and a day away from the day the shares were purchased.
To pose my question, I will use the following example. Say I bought 1000 shares in December '08 and 1000 shares in March '09. If I decide to sell 1000 shares in December '09 (as a long-term gain), would I still be charged the 35% tax as a short-term gain since I purchased additional shares as recently as March? Or would I be taxed 15% on those 1000 shares that were purchased in December?
Basically, should I stop buying Ford stock if I want to sell some of my position as soon as possible as a long-term capital gain?
You'd be taxed at the long term rate of 15% (if you're in the 25% bracket or higher) on the 1000 shares because, by default, the first shares you bought are the first shares sold. If, for some reason, you wanted to sell your March shares first, you'd have to specify so at the time of the sale.
I agree with post...I have also been buying F since last August a few hundred at a time with intent to hold for a year or more. People often overlook the additional 20% gain if they are able to hold the stock for a year.
I agree with post...I have also been buying F since last August a few hundred at a time with intent to hold for a year or more. People often overlook the additional 20% gain if they are able to hold the stock for a year.
I agree, I'm a small enough investor that I don't want to take the tax hit by cashing in early. Depending on what Ford does the next year or two, I may hold until it hits $20-25 or sell earlier if it looks like the steam is starting to run out (which I don't think will happen anytime soon considering the product outlook, debt reduction, and market share increases).
I believe the plan is to raise the LT cap gains rate on families making over $250k/year only.
Yeah that too. But no really do a google search on capital gains taxes and Obama's plans. I believe by the end of next year the capital gains taxes even on long term holds will go up to 20%.
I've heard rumors about this as well...Might be a bigger than usual sell off in December.
I always realize losses in December anyway
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