First in first out capital gains tax solution

HaShev

Gold Member
Jun 19, 2009
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Because many investors buy varied shares and sell odd lots above or below the number amount of former purchases and do our buying to cost avg then the tax should also be based on cost avg to make it easier to figure and track for both parties.
By using cost avg, Investing won't be affected by trying to sell a specific lot or trying to figure out how many shares you first bought and which lot came first (like on the fly during quick need to trade).
The wash sale stuff is crazy for the broker to easily format and ledger for the investor to easily understand and or convey on taxes and even harder for the I.R.S. to monitor/check and compute, imagine the difficulty if first in first out is used. Cost avg method is SOOOO MUCH EASIER for all involved and most fair.
 
Because many investors buy varied shares and sell odd lots above or below the number amount of former purchases and do our buying to cost avg then the tax should also be based on cost avg to make it easier to figure and track for both parties.
By using cost avg, Investing won't be affected by trying to sell a specific lot or trying to figure out how many shares you first bought and which lot came first (like on the fly during quick need to trade).
The wash sale stuff is crazy for the broker to easily format and ledger for the investor to easily understand and or convey on taxes and even harder for the I.R.S. to monitor/check and compute, imagine the difficulty if first in first out is used. Cost avg method is SOOOO MUCH EASIER for all involved and most fair.

They should leave the rule as is.
 
Are you serious about rationality at the IRS?
Did you know that until I embarassed them by lecturing them that their capital gains practice was that of a third world country, all those years they never had your purchase price info, never required it from brokers.
So if you were day trading constantly they assumed the same money transfering back and forth was all income till you submited the costs of purchase based on an honor system, since they never had broker info to check it. That next tax season they changed it to require that info from brokers, probably saving many people from unecessary and costly time consuming audits due to IRS assumptions due to that strange practice.
We need reviewers in all sectors of this gov't to clean up the neglect and waste and mistakes done through accepting the status quo and getting lazy in inherited practices.
 

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