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IAMGOLD Corp. Message Board

  • bueller1969 bueller1969 Jun 3, 2013 5:45 PM Flag

    Trading Question

    Are there tax consequences for the following scenario:

    3 months ago I buy IAG shares at $7

    2 months later I buy additional shares of IAG at $5

    Today I sell the shares purchased at $5 for a .50 profit.... while holding the shares purchased at $7

    Are there any tax implications I need to consider for not using the First In First Out method?

    Thank you for all intelligent answers,.

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    • It depends if you are a TEA PARTY member or a Marxist community organizer. The later... you wont be reviewed by the IRS and anything you do will be overlooked by the IRS. If, however, you are a TEA PARTY member or think the U.S. Constitution is kewl... you will be audited and harrassed until you pay more than you should.

    • You will be taxed from the shares of IAG you sold short term capital gain based on your tax income bracket. The shares of IAG you bought @ 7.00 will remain in your account, unless you sell them on loss. However, if you continue to hold them till it appreciate its value over certain period of time 1 year minimum, you will be taxed long term capital gain. If you sell on losses, your accountant will make adjustments on your stock profits and losses according to your income bracket. Cheers...

      Sentiment: Buy

    • Just make sure that your broker knows what method you used or your year end brokerage statement will not square up. You can specify lowest cost, highest cost, FIFO, LIFO, etc with your broker. If you change methods for each trade you need to specify the tax lot used on the trade when you place the order, or have your broker adjust your records to the method you used so that your year end brokerage statement matches how you report it to the IRS. All brokerages report FIFO to the IRS unless you have specifically requested they use a different method.

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