FIFO tax change -- In 2018 any stock sales in taxable accounts must be FIFO and we cannot select a specific lot. This messes me up quite a bit. I have a few cases where a stock has gone up considerably over the years and i also bought more at a higher price. In 2018, I will not be able to sell those higher prices lots. Let's call these lots - "blocked".
I already sold my losses (not very many), but I am also selling my blocked lots this year to realize a gain in 2017, and reduce my stake in a company. For example, if I own 1,000 shares of a utility, and 800 shares are up 100%, while the last 200 are up 10%, I am selling the 10% gain shares now. I can buy a similar utility that I do not presently own, and I will have the same sector exposure. In the future, if I want to sell some utilities, I can sell the freshly bought shares, and they won't be blocked by large gainers.
So if we cannot select lots, it looks like we should NEVER add to a winning position in a taxable account. We should buy a similar company in the same sector instead -- because we can select which company to sell -- not which lot.
This messes up my tax planning and puts me into a higher medicare bracket. grrr.
By this logic, if people own rental houses, if they sell one, it should be FIFO!
grommit
 |
