When one has accumulated shares of a stock or a mutual fund over time at different prices, for minimizing taxes, which of the following shares should be sold?

Question

Quizplus · Accepted Answer

Selling shares that cost the most will result in a smaller capital gain and therefore minimize taxes. This is known as the "specific identification" method of selling shares. It is important to keep records of the purchase prices of the shares for tax purposes. The company may provide a weighted average, but the individual should still keep track of their own records.

When One Has Accumulated Shares of a Stock or a Mutual