Capital gains on stocks sold to take initial investment off the tableCapital Gains Tax - Does this apply only to the actual “gains” or to the entire amount of my sale?Capital Gains Tax with Multiple 'buy' Transactions per Stock (U.S.)Why Are Percentage Gains Used for Capital Gains Tax Calculations?Capital gains tax on stocksHow does capital gains tax work when buying the same stock at different times?Partial Sale of Private (Foreign) Company StockHow do transaction and transfer fees affect the ACB of cryptocurrency assets?Is the wash sale rule canceled by something if you don't hold the stock in question for 30 days?How does the “wash sale” rule work while selling for long term capital gains?Though I understood my RSU and selling the shares I acquird through it but not sure anymore
When do characters level up?
Should I disclose a colleague's illness (that I should not know about) when others badmouth him
When did God say "let all the angels of God worship him" as stated in Hebrews 1:6?
General purpose replacement for enum with FlagsAttribute
Rests in pickup measure (anacrusis)
Graph with same number of edges and vertices is a loop?
Why is desire the root of suffering?
Ticket sales for Queen at the Live Aid
Apparent Ring of Craters on the Moon
Why do they consider the Ori false gods?
How can I find where certain bash function is defined?
What is the largest (size) solid object ever dropped from an airplane to impact the ground in freefall?
When and what was the first 3D acceleration device ever released?
I unknowingly submitted plagiarised work
How do I align equations in three columns, justified right, center and left?
How many chess players are over 2500 Elo?
Rotation period of a planet around a star (sun)
Would the Geas spell work in a dead magic zone once you enter it?
Why does the 6502 have the BIT instruction?
Riley Rebuses that Share a Common Theme
Tabulated absorption spectra of greenhouse gases?
Can a Beholder use rays in melee range?
Why are C64 games inconsistent with which joystick port they use?
If a person had control of every single cell of their body, would they be able to transform into another creature?
Capital gains on stocks sold to take initial investment off the table
Capital Gains Tax - Does this apply only to the actual “gains” or to the entire amount of my sale?Capital Gains Tax with Multiple 'buy' Transactions per Stock (U.S.)Why Are Percentage Gains Used for Capital Gains Tax Calculations?Capital gains tax on stocksHow does capital gains tax work when buying the same stock at different times?Partial Sale of Private (Foreign) Company StockHow do transaction and transfer fees affect the ACB of cryptocurrency assets?Is the wash sale rule canceled by something if you don't hold the stock in question for 30 days?How does the “wash sale” rule work while selling for long term capital gains?Though I understood my RSU and selling the shares I acquird through it but not sure anymore
.everyoneloves__top-leaderboard:empty,.everyoneloves__mid-leaderboard:empty,.everyoneloves__bot-mid-leaderboard:empty margin-bottom:0;
Suppose I have invested $100K in a stock that was trading at $100 per share. The stock has gone up by 10 percent and is now at $110. I sold 909 units at $110, i.e. 909*$110 ≈ $100K, which is practically the same amount as my initial investment.
The remaining 91 stocks are still owned by me.
My question is: during that sale, how much capital gain did I make?
I am thinking $100K - $100K = $0 gains.
Is that correct?
After seeing the responses, I am adding a bit more to the scenario.
If
I buy 1000 units in 2018 for 100 Dollars a unit.
I buy another 1000 units in 2019 for 50 Dollars a unit because the stock has fallen.
I sell all the 2000 units in 2019 for a price of 75 Dollars.
What would be my capital gain?
Zero?
stocks income-tax investing canada capital-gains-tax
asked May 14 at 15:10
Keerikkattu ChellappanKeerikkattu Chellappan
6815
add a comment |
Suppose I have invested $100K in a stock that was trading at $100 per share. The stock has gone up by 10 percent and is now at $110. I sold 909 units at $110, i.e. 909*$110 ≈ $100K, which is practically the same amount as my initial investment.
The remaining 91 stocks are still owned by me.
My question is: during that sale, how much capital gain did I make?
I am thinking $100K - $100K = $0 gains.
Is that correct?
After seeing the responses, I am adding a bit more to the scenario.
If
I buy 1000 units in 2018 for 100 Dollars a unit.
I buy another 1000 units in 2019 for 50 Dollars a unit because the stock has fallen.
I sell all the 2000 units in 2019 for a price of 75 Dollars.
What would be my capital gain?
Zero?
stocks income-tax investing canada capital-gains-tax
asked May 14 at 15:10
Keerikkattu ChellappanKeerikkattu Chellappan
6815
The way the tax office looks at it, you bought 1000 separate shares, not "one investment". But your example is a simple case. Suppose you buy 1,000 shares in January, another 1,000 in February (at a different price) and then sell 1,500 shares in March. The rules say whether that means you sold all the January shares and half the February, or half the January and all the February. You don't get to choose which way to calculate the tax bill!
– alephzero
May 14 at 16:23
4
@alephzero: Actually, in many cases the investor can issue an order to sell by lot. Often it's advantageous to sell the oldest lot (which is more likely to qualify for long-term capital gains treatment) than the most expensive one (which delays realizing the gain). But in this case, all the possible ways to divide the shares have the same duration and the same purchase price.
– Ben Voigt
May 14 at 21:31
"What would be my capital gain? Zero?" Determine the cost of the first two purchases and add them up. Determine the proceeds from the sale. Now subtract the cost from the proceeds and VOILA! , you have the answer.
– Bob Baerker
May 15 at 21:48
@Bob Baerker 100K + 50K - 150K =0.
– Keerikkattu Chellappan
May 16 at 0:26
1
@Keerikkattu Chellappan - You know the old expression about teaching a man to fish? Thanks for providing the fish that I already had and didn't need. But someone else needed fishing instructions :->)
– Bob Baerker
May 16 at 3:21
add a comment |
Suppose I have invested $100K in a stock that was trading at $100 per share. The stock has gone up by 10 percent and is now at $110. I sold 909 units at $110, i.e. 909*$110 ≈ $100K, which is practically the same amount as my initial investment.
The remaining 91 stocks are still owned by me.
My question is: during that sale, how much capital gain did I make?
I am thinking $100K - $100K = $0 gains.
Is that correct?
After seeing the responses, I am adding a bit more to the scenario.
If
I buy 1000 units in 2018 for 100 Dollars a unit.
I buy another 1000 units in 2019 for 50 Dollars a unit because the stock has fallen.
I sell all the 2000 units in 2019 for a price of 75 Dollars.
What would be my capital gain?
Zero?
stocks income-tax investing canada capital-gains-tax
asked May 14 at 15:10
Keerikkattu ChellappanKeerikkattu Chellappan
6815
Suppose I have invested $100K in a stock that was trading at $100 per share. The stock has gone up by 10 percent and is now at $110. I sold 909 units at $110, i.e. 909*$110 ≈ $100K, which is practically the same amount as my initial investment.
The remaining 91 stocks are still owned by me.
My question is: during that sale, how much capital gain did I make?
I am thinking $100K - $100K = $0 gains.
Is that correct?
After seeing the responses, I am adding a bit more to the scenario.
If
I buy 1000 units in 2018 for 100 Dollars a unit.
I buy another 1000 units in 2019 for 50 Dollars a unit because the stock has fallen.
I sell all the 2000 units in 2019 for a price of 75 Dollars.
What would be my capital gain?
Zero?
stocks income-tax investing canada capital-gains-tax
stocks income-tax investing canada capital-gains-tax
asked May 14 at 15:10
Keerikkattu ChellappanKeerikkattu Chellappan
6815
asked May 14 at 15:10
Keerikkattu ChellappanKeerikkattu Chellappan
6815
edited May 15 at 14:09
Keerikkattu Chellappan
asked May 14 at 15:10
Keerikkattu ChellappanKeerikkattu Chellappan
6815
asked May 14 at 15:10
Keerikkattu ChellappanKeerikkattu Chellappan
6815
asked May 14 at 15:10
Keerikkattu ChellappanKeerikkattu Chellappan
6815
6815
The way the tax office looks at it, you bought 1000 separate shares, not "one investment". But your example is a simple case. Suppose you buy 1,000 shares in January, another 1,000 in February (at a different price) and then sell 1,500 shares in March. The rules say whether that means you sold all the January shares and half the February, or half the January and all the February. You don't get to choose which way to calculate the tax bill!
– alephzero
May 14 at 16:23
4
@alephzero: Actually, in many cases the investor can issue an order to sell by lot. Often it's advantageous to sell the oldest lot (which is more likely to qualify for long-term capital gains treatment) than the most expensive one (which delays realizing the gain). But in this case, all the possible ways to divide the shares have the same duration and the same purchase price.
– Ben Voigt
May 14 at 21:31
"What would be my capital gain? Zero?" Determine the cost of the first two purchases and add them up. Determine the proceeds from the sale. Now subtract the cost from the proceeds and VOILA! , you have the answer.
– Bob Baerker
May 15 at 21:48
@Bob Baerker 100K + 50K - 150K =0.
– Keerikkattu Chellappan
May 16 at 0:26
1
@Keerikkattu Chellappan - You know the old expression about teaching a man to fish? Thanks for providing the fish that I already had and didn't need. But someone else needed fishing instructions :->)
– Bob Baerker
May 16 at 3:21
add a comment |
The way the tax office looks at it, you bought 1000 separate shares, not "one investment". But your example is a simple case. Suppose you buy 1,000 shares in January, another 1,000 in February (at a different price) and then sell 1,500 shares in March. The rules say whether that means you sold all the January shares and half the February, or half the January and all the February. You don't get to choose which way to calculate the tax bill!
– alephzero
May 14 at 16:23
4
@alephzero: Actually, in many cases the investor can issue an order to sell by lot. Often it's advantageous to sell the oldest lot (which is more likely to qualify for long-term capital gains treatment) than the most expensive one (which delays realizing the gain). But in this case, all the possible ways to divide the shares have the same duration and the same purchase price.
– Ben Voigt
May 14 at 21:31
"What would be my capital gain? Zero?" Determine the cost of the first two purchases and add them up. Determine the proceeds from the sale. Now subtract the cost from the proceeds and VOILA! , you have the answer.
– Bob Baerker
May 15 at 21:48
@Bob Baerker 100K + 50K - 150K =0.
– Keerikkattu Chellappan
May 16 at 0:26
1
@Keerikkattu Chellappan - You know the old expression about teaching a man to fish? Thanks for providing the fish that I already had and didn't need. But someone else needed fishing instructions :->)
– Bob Baerker
May 16 at 3:21
The way the tax office looks at it, you bought 1000 separate shares, not "one investment". But your example is a simple case. Suppose you buy 1,000 shares in January, another 1,000 in February (at a different price) and then sell 1,500 shares in March. The rules say whether that means you sold all the January shares and half the February, or half the January and all the February. You don't get to choose which way to calculate the tax bill!
– alephzero
May 14 at 16:23
The way the tax office looks at it, you bought 1000 separate shares, not "one investment". But your example is a simple case. Suppose you buy 1,000 shares in January, another 1,000 in February (at a different price) and then sell 1,500 shares in March. The rules say whether that means you sold all the January shares and half the February, or half the January and all the February. You don't get to choose which way to calculate the tax bill!
– alephzero
May 14 at 16:23
4
4
@alephzero: Actually, in many cases the investor can issue an order to sell by lot. Often it's advantageous to sell the oldest lot (which is more likely to qualify for long-term capital gains treatment) than the most expensive one (which delays realizing the gain). But in this case, all the possible ways to divide the shares have the same duration and the same purchase price.
– Ben Voigt
May 14 at 21:31
@alephzero: Actually, in many cases the investor can issue an order to sell by lot. Often it's advantageous to sell the oldest lot (which is more likely to qualify for long-term capital gains treatment) than the most expensive one (which delays realizing the gain). But in this case, all the possible ways to divide the shares have the same duration and the same purchase price.
– Ben Voigt
May 14 at 21:31
"What would be my capital gain? Zero?" Determine the cost of the first two purchases and add them up. Determine the proceeds from the sale. Now subtract the cost from the proceeds and VOILA! , you have the answer.
– Bob Baerker
May 15 at 21:48
"What would be my capital gain? Zero?" Determine the cost of the first two purchases and add them up. Determine the proceeds from the sale. Now subtract the cost from the proceeds and VOILA! , you have the answer.
– Bob Baerker
May 15 at 21:48
@Bob Baerker 100K + 50K - 150K =0.
– Keerikkattu Chellappan
May 16 at 0:26
@Bob Baerker 100K + 50K - 150K =0.
– Keerikkattu Chellappan
May 16 at 0:26
1
1
@Keerikkattu Chellappan - You know the old expression about teaching a man to fish? Thanks for providing the fish that I already had and didn't need. But someone else needed fishing instructions :->)
– Bob Baerker
May 16 at 3:21
@Keerikkattu Chellappan - You know the old expression about teaching a man to fish? Thanks for providing the fish that I already had and didn't need. But someone else needed fishing instructions :->)
– Bob Baerker
May 16 at 3:21
add a comment |
3 Answers
3
active
oldest
votes
No, it is not correct.
You bought those 909 shares for $90,900. You sold them for $99,990. Your capital gain is $9,090
Or you could calculate the cap gain by multiplying the share price increase by the number of shares sold:
909 * $10 = + $9,090
edited May 14 at 15:54
stannius
3,0732130
answered May 14 at 15:21
Bob BaerkerBob Baerker
21.4k23359
12
Don’t forget to add the cost of the buying the stock to the basis cost and subtract the cost of selling the stock from the value of the sale. If you paid a transaction fee of (say) $50 to buy and another $50 to sell, this will reduce your capital gains by $100. When you sell only a portion of a lot that had a single transaction fee, it is appropriate to apportion the transaction fee based on the percentage of the lot you are selling.
– MTA
May 14 at 18:37
add a comment |
A term more accurate than "make" is "realize". When you sell an asset, the capital gain realized is the sale price of that asset minus the basis of that asset. The sale price of the shares that you sold was $99,999. The basis was $90,900; for the basis, you look at how much you paid for the particular shares that you sold, not how much you've paid for shares in general. Since $99,999-$90,000 = $9,090, you've realized $9,090 in capital gain.
answered May 14 at 16:24
AcccumulationAcccumulation
4,333416
add a comment |
You have to account for the fact that you still have stocks. So you must break them into lots.
- You have a lot of 909 units, cost basis $90,900, sale price $99,990.
- You have a lot of 91 units, cost basis $9100, held.
The first lot sale was a taxable event of $9090 gain. The second lot isn't taxable yet.
You're trying to force the lots to be #1 cost basis $100,000 sale price $99,990 (taxable event: loss $10)... and #2 cost basis $0 held. So effectively you'll take all the capital gains and pay all the tax when you sell the last lot. That's valid as a way to model your assets, but it's not allowed for tax purposes. The government wants to tax the gains when they occur.
answered May 14 at 21:01
HarperHarper
26.7k63995
@user4556274 good catch, that's embarrassing!
– Harper
May 14 at 21:39
add a comment |
protected by JoeTaxpayer♦ May 14 at 23:31
Thank you for your interest in this question.
Because it has attracted low-quality or spam answers that had to be removed, posting an answer now requires 10 reputation on this site (the association bonus does not count).
Would you like to answer one of these unanswered questions instead?
3 Answers
3
active
oldest
votes
3 Answers
3
active
oldest
votes
active
oldest
votes
active
oldest
votes
No, it is not correct.
You bought those 909 shares for $90,900. You sold them for $99,990. Your capital gain is $9,090
Or you could calculate the cap gain by multiplying the share price increase by the number of shares sold:
909 * $10 = + $9,090
edited May 14 at 15:54
stannius
3,0732130
answered May 14 at 15:21
Bob BaerkerBob Baerker
21.4k23359
12
Don’t forget to add the cost of the buying the stock to the basis cost and subtract the cost of selling the stock from the value of the sale. If you paid a transaction fee of (say) $50 to buy and another $50 to sell, this will reduce your capital gains by $100. When you sell only a portion of a lot that had a single transaction fee, it is appropriate to apportion the transaction fee based on the percentage of the lot you are selling.
– MTA
May 14 at 18:37
add a comment |
No, it is not correct.
You bought those 909 shares for $90,900. You sold them for $99,990. Your capital gain is $9,090
Or you could calculate the cap gain by multiplying the share price increase by the number of shares sold:
909 * $10 = + $9,090
edited May 14 at 15:54
stannius
3,0732130
answered May 14 at 15:21
Bob BaerkerBob Baerker
21.4k23359
12
Don’t forget to add the cost of the buying the stock to the basis cost and subtract the cost of selling the stock from the value of the sale. If you paid a transaction fee of (say) $50 to buy and another $50 to sell, this will reduce your capital gains by $100. When you sell only a portion of a lot that had a single transaction fee, it is appropriate to apportion the transaction fee based on the percentage of the lot you are selling.
– MTA
May 14 at 18:37
add a comment |
No, it is not correct.
You bought those 909 shares for $90,900. You sold them for $99,990. Your capital gain is $9,090
Or you could calculate the cap gain by multiplying the share price increase by the number of shares sold:
909 * $10 = + $9,090
edited May 14 at 15:54
stannius
3,0732130
answered May 14 at 15:21
Bob BaerkerBob Baerker
21.4k23359
No, it is not correct.
You bought those 909 shares for $90,900. You sold them for $99,990. Your capital gain is $9,090
Or you could calculate the cap gain by multiplying the share price increase by the number of shares sold:
909 * $10 = + $9,090
edited May 14 at 15:54
stannius
3,0732130
answered May 14 at 15:21
Bob BaerkerBob Baerker
21.4k23359
edited May 14 at 15:54
stannius
3,0732130
edited May 14 at 15:54
stannius
3,0732130
edited May 14 at 15:54
stannius
3,0732130
3,0732130
answered May 14 at 15:21
Bob BaerkerBob Baerker
21.4k23359
answered May 14 at 15:21
Bob BaerkerBob Baerker
21.4k23359
answered May 14 at 15:21
Bob BaerkerBob Baerker
21.4k23359
21.4k23359
12
Don’t forget to add the cost of the buying the stock to the basis cost and subtract the cost of selling the stock from the value of the sale. If you paid a transaction fee of (say) $50 to buy and another $50 to sell, this will reduce your capital gains by $100. When you sell only a portion of a lot that had a single transaction fee, it is appropriate to apportion the transaction fee based on the percentage of the lot you are selling.
– MTA
May 14 at 18:37
add a comment |
12
Don’t forget to add the cost of the buying the stock to the basis cost and subtract the cost of selling the stock from the value of the sale. If you paid a transaction fee of (say) $50 to buy and another $50 to sell, this will reduce your capital gains by $100. When you sell only a portion of a lot that had a single transaction fee, it is appropriate to apportion the transaction fee based on the percentage of the lot you are selling.
– MTA
May 14 at 18:37
12
12
Don’t forget to add the cost of the buying the stock to the basis cost and subtract the cost of selling the stock from the value of the sale. If you paid a transaction fee of (say) $50 to buy and another $50 to sell, this will reduce your capital gains by $100. When you sell only a portion of a lot that had a single transaction fee, it is appropriate to apportion the transaction fee based on the percentage of the lot you are selling.
– MTA
May 14 at 18:37
Don’t forget to add the cost of the buying the stock to the basis cost and subtract the cost of selling the stock from the value of the sale. If you paid a transaction fee of (say) $50 to buy and another $50 to sell, this will reduce your capital gains by $100. When you sell only a portion of a lot that had a single transaction fee, it is appropriate to apportion the transaction fee based on the percentage of the lot you are selling.
– MTA
May 14 at 18:37
add a comment |
A term more accurate than "make" is "realize". When you sell an asset, the capital gain realized is the sale price of that asset minus the basis of that asset. The sale price of the shares that you sold was $99,999. The basis was $90,900; for the basis, you look at how much you paid for the particular shares that you sold, not how much you've paid for shares in general. Since $99,999-$90,000 = $9,090, you've realized $9,090 in capital gain.
answered May 14 at 16:24
AcccumulationAcccumulation
4,333416
add a comment |
A term more accurate than "make" is "realize". When you sell an asset, the capital gain realized is the sale price of that asset minus the basis of that asset. The sale price of the shares that you sold was $99,999. The basis was $90,900; for the basis, you look at how much you paid for the particular shares that you sold, not how much you've paid for shares in general. Since $99,999-$90,000 = $9,090, you've realized $9,090 in capital gain.
answered May 14 at 16:24
AcccumulationAcccumulation
4,333416
add a comment |
A term more accurate than "make" is "realize". When you sell an asset, the capital gain realized is the sale price of that asset minus the basis of that asset. The sale price of the shares that you sold was $99,999. The basis was $90,900; for the basis, you look at how much you paid for the particular shares that you sold, not how much you've paid for shares in general. Since $99,999-$90,000 = $9,090, you've realized $9,090 in capital gain.
answered May 14 at 16:24
AcccumulationAcccumulation
4,333416
A term more accurate than "make" is "realize". When you sell an asset, the capital gain realized is the sale price of that asset minus the basis of that asset. The sale price of the shares that you sold was $99,999. The basis was $90,900; for the basis, you look at how much you paid for the particular shares that you sold, not how much you've paid for shares in general. Since $99,999-$90,000 = $9,090, you've realized $9,090 in capital gain.
answered May 14 at 16:24
AcccumulationAcccumulation
4,333416
answered May 14 at 16:24
AcccumulationAcccumulation
4,333416
answered May 14 at 16:24
AcccumulationAcccumulation
4,333416
answered May 14 at 16:24
AcccumulationAcccumulation
4,333416
4,333416
add a comment |
add a comment |
You have to account for the fact that you still have stocks. So you must break them into lots.
- You have a lot of 909 units, cost basis $90,900, sale price $99,990.
- You have a lot of 91 units, cost basis $9100, held.
The first lot sale was a taxable event of $9090 gain. The second lot isn't taxable yet.
You're trying to force the lots to be #1 cost basis $100,000 sale price $99,990 (taxable event: loss $10)... and #2 cost basis $0 held. So effectively you'll take all the capital gains and pay all the tax when you sell the last lot. That's valid as a way to model your assets, but it's not allowed for tax purposes. The government wants to tax the gains when they occur.
answered May 14 at 21:01
HarperHarper
26.7k63995
@user4556274 good catch, that's embarrassing!
– Harper
May 14 at 21:39
add a comment |
You have to account for the fact that you still have stocks. So you must break them into lots.
- You have a lot of 909 units, cost basis $90,900, sale price $99,990.
- You have a lot of 91 units, cost basis $9100, held.
The first lot sale was a taxable event of $9090 gain. The second lot isn't taxable yet.
You're trying to force the lots to be #1 cost basis $100,000 sale price $99,990 (taxable event: loss $10)... and #2 cost basis $0 held. So effectively you'll take all the capital gains and pay all the tax when you sell the last lot. That's valid as a way to model your assets, but it's not allowed for tax purposes. The government wants to tax the gains when they occur.
answered May 14 at 21:01
HarperHarper
26.7k63995
@user4556274 good catch, that's embarrassing!
– Harper
May 14 at 21:39
add a comment |
You have to account for the fact that you still have stocks. So you must break them into lots.
- You have a lot of 909 units, cost basis $90,900, sale price $99,990.
- You have a lot of 91 units, cost basis $9100, held.
The first lot sale was a taxable event of $9090 gain. The second lot isn't taxable yet.
You're trying to force the lots to be #1 cost basis $100,000 sale price $99,990 (taxable event: loss $10)... and #2 cost basis $0 held. So effectively you'll take all the capital gains and pay all the tax when you sell the last lot. That's valid as a way to model your assets, but it's not allowed for tax purposes. The government wants to tax the gains when they occur.
answered May 14 at 21:01
HarperHarper
26.7k63995
You have to account for the fact that you still have stocks. So you must break them into lots.
- You have a lot of 909 units, cost basis $90,900, sale price $99,990.
- You have a lot of 91 units, cost basis $9100, held.
The first lot sale was a taxable event of $9090 gain. The second lot isn't taxable yet.
You're trying to force the lots to be #1 cost basis $100,000 sale price $99,990 (taxable event: loss $10)... and #2 cost basis $0 held. So effectively you'll take all the capital gains and pay all the tax when you sell the last lot. That's valid as a way to model your assets, but it's not allowed for tax purposes. The government wants to tax the gains when they occur.
answered May 14 at 21:01
HarperHarper
26.7k63995
edited May 14 at 21:39
answered May 14 at 21:01
HarperHarper
26.7k63995
answered May 14 at 21:01
HarperHarper
26.7k63995
answered May 14 at 21:01
HarperHarper
26.7k63995
26.7k63995
@user4556274 good catch, that's embarrassing!
– Harper
May 14 at 21:39
add a comment |
@user4556274 good catch, that's embarrassing!
– Harper
May 14 at 21:39
@user4556274 good catch, that's embarrassing!
– Harper
May 14 at 21:39
@user4556274 good catch, that's embarrassing!
– Harper
May 14 at 21:39
add a comment |
protected by JoeTaxpayer♦ May 14 at 23:31
Thank you for your interest in this question.
Because it has attracted low-quality or spam answers that had to be removed, posting an answer now requires 10 reputation on this site (the association bonus does not count).
Would you like to answer one of these unanswered questions instead?
The way the tax office looks at it, you bought 1000 separate shares, not "one investment". But your example is a simple case. Suppose you buy 1,000 shares in January, another 1,000 in February (at a different price) and then sell 1,500 shares in March. The rules say whether that means you sold all the January shares and half the February, or half the January and all the February. You don't get to choose which way to calculate the tax bill!
– alephzero
May 14 at 16:23
4
@alephzero: Actually, in many cases the investor can issue an order to sell by lot. Often it's advantageous to sell the oldest lot (which is more likely to qualify for long-term capital gains treatment) than the most expensive one (which delays realizing the gain). But in this case, all the possible ways to divide the shares have the same duration and the same purchase price.
– Ben Voigt
May 14 at 21:31
"What would be my capital gain? Zero?" Determine the cost of the first two purchases and add them up. Determine the proceeds from the sale. Now subtract the cost from the proceeds and VOILA! , you have the answer.
– Bob Baerker
May 15 at 21:48
@Bob Baerker 100K + 50K - 150K =0.
– Keerikkattu Chellappan
May 16 at 0:26
1
@Keerikkattu Chellappan - You know the old expression about teaching a man to fish? Thanks for providing the fish that I already had and didn't need. But someone else needed fishing instructions :->)
– Bob Baerker
May 16 at 3:21