Delawaredave5
Full time employment: Posting here.
- Joined
- Dec 22, 2004
- Messages
- 699
Mutual fund of mine send form asking me to declare cost basis method. Taxable account.
Default is average cost. Other options are listed below. I'm assuming "LGUT" is best below (although I didn't know they'd do this).
Looking for any comments on best approach.
Sales / distribution is expected to be during retirement.
FIFO,
LIFO,
HIFO (Highest cost shares are sold first),
LOFO (lowest cost shares are sold first).
LGUT (lost/gain utilization - they sell lots with largest losses first, then long term gains, then short term gains).
SLID (specific lot identification - I tell them which specific shares to sell)
Default is average cost. Other options are listed below. I'm assuming "LGUT" is best below (although I didn't know they'd do this).
Looking for any comments on best approach.
Sales / distribution is expected to be during retirement.
FIFO,
LIFO,
HIFO (Highest cost shares are sold first),
LOFO (lowest cost shares are sold first).
LGUT (lost/gain utilization - they sell lots with largest losses first, then long term gains, then short term gains).
SLID (specific lot identification - I tell them which specific shares to sell)