Week 42 Day 3: Tax Lot Accounting: Choosing Which Shares to Sell

When you sell shares, you can choose specifically WHICH shares to sell. This is called specific identification or 'spec ID.' By selecting the shares with the highest cost basis (or largest loss), you ...

When you sell shares, you can choose specifically WHICH shares to sell. This is called specific identification or 'spec ID.' By selecting the shares with the highest cost basis (or largest loss), you maximize the tax benefit. This works whether you are harvesting losses or minimizing gains.