Justin from Summ here. What’s your goal? Sell your highest tax lots first to minimize gains or truly sell a specific tax lot? If you want to always sell the highest tax lots first, you can use a tax software and set the cost basis method to “HIFO”.
I’ll say the thing Justin was too modest to say and point out that Summ has different spec ID algorithms which aim to target lowest tax paid. You can experiment by changing the inventory method to see how it would affect tax paid. I’d analyze which not only shows lowest gains but also keep in mind short term gains are taxed at a higher rate. $10k of short term gains pays more tax than $11k of long term gains for example.
Justin from Summ here. What’s your goal? Sell your highest tax lots first to minimize gains or truly sell a specific tax lot?
If you want to always sell the highest tax lots first, you can use a tax software and set the cost basis method to “HIFO”.
Yeah I just want to minimize capital gains. Ok, thanks, do you have a software rec?
There are plenty of good options, but I’m bias towards Summ as I’m a product lead there haha
I’ll say the thing Justin was too modest to say and point out that Summ has different spec ID algorithms which aim to target lowest tax paid.
You can experiment by changing the inventory method to see how it would affect tax paid.
I’d analyze which not only shows lowest gains but also keep in mind short term gains are taxed at a higher rate.
$10k of short term gains pays more tax than $11k of long term gains for example.