Anonymous
Anonymous asked in Business & FinanceInvesting · 2 months ago

How do you determine "purchase price" for this capital gains scenario?

June 1 - I bought 100 shares of Company ABC at $0.75/share.

July 1 - I bought 50 shares of Company ABC at $1.00/share.

I now own 150 shares of Company ABC, but I decide to sell 20 shares for $1.50/share.

What do I use as my "purchase price" when calculating the capital gain?

5 Answers

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  • 2 months ago
    Favourite answer

    You specify which group of stock the 20 you sold came from. {This allows investors a little manipulation of their income).

  • kswck2
    Lv 7
    2 months ago

    The easy answer is the cost is what your brokerage tells you it is at the end of the year when they send you the tax statement. 

  • 2 months ago

    Unless noted otherwise, it's based on a weighted average. 

  • Judy
    Lv 7
    2 months ago

    If you direct your broker to sell specific shares, use what you paid for those shares.  Otherwise use a weighted average

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  • 2 months ago

    Generally, "First In, First Out" unless you can specifically identify the shares that you sold which, if they are in the same account, you can not.

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