This may have been asked before, but apologies. I've searched through threads and haven't found an answer. Im posting it here, but guess it could easily belong in the Tax forum too (so mods please move the thread).
I have shares in a multi-national US company, acquired over the last 5+ years. I'm looking to sell these over the next few months to fund a house extension. My brokerage account is with Fidelity and I have the option to sell specific shares that have been purchased at different stages over the last 5+ years, and at different cost prices. In the resulting statement, the gain is clearly shown for selling those specific share lot(s).
My question is, despite being able to select specifically which shares to sell at any given time, does FIFO still apply here in terms of calculating CGT owed?
e.g.
Lot1: 150 shares purchased in Jan 2018 @ €125.00 per share
Lot2: 150 shares purchased in Jan 2019 @ €150.00 per share
Lot3: 150 shares purchased in Jan 2020 @ €200.00 per share
In Jan 2023, I decided to sell 100 shares. Current share price is €230.00 per share.
In the brokerage account, I elect to sell 100 shares from is Lot 3.
Which calculation below is the right way to determine CGT in this case?:
Option 1:
100 shares sold @ €230.00 = €23,000
shares purchased @ €200.00 (lot3) = €20,000
profit = €3,000
CGT owed = (€3000-€1,270) * .33 = €570.90
Option 2: FIFO
100 shares sold @ €230.00 = €23,000
shares purchased @ €125.00 according to FIFO = €12,500
profit = €10,500
CGT owed = (€10,500 - €1,270) * .33 = €3,045.90
Another question, does it make any difference when I pay the CGT owed, once it's done before Nov 30th of the same year in which the shares were sold? Im tempted to pay it sooner rather than later to ensure I don't spend the money and leave myself short to pay the tax bill
I have shares in a multi-national US company, acquired over the last 5+ years. I'm looking to sell these over the next few months to fund a house extension. My brokerage account is with Fidelity and I have the option to sell specific shares that have been purchased at different stages over the last 5+ years, and at different cost prices. In the resulting statement, the gain is clearly shown for selling those specific share lot(s).
My question is, despite being able to select specifically which shares to sell at any given time, does FIFO still apply here in terms of calculating CGT owed?
e.g.
Lot1: 150 shares purchased in Jan 2018 @ €125.00 per share
Lot2: 150 shares purchased in Jan 2019 @ €150.00 per share
Lot3: 150 shares purchased in Jan 2020 @ €200.00 per share
In Jan 2023, I decided to sell 100 shares. Current share price is €230.00 per share.
In the brokerage account, I elect to sell 100 shares from is Lot 3.
Which calculation below is the right way to determine CGT in this case?:
Option 1:
100 shares sold @ €230.00 = €23,000
shares purchased @ €200.00 (lot3) = €20,000
profit = €3,000
CGT owed = (€3000-€1,270) * .33 = €570.90
Option 2: FIFO
100 shares sold @ €230.00 = €23,000
shares purchased @ €125.00 according to FIFO = €12,500
profit = €10,500
CGT owed = (€10,500 - €1,270) * .33 = €3,045.90
Another question, does it make any difference when I pay the CGT owed, once it's done before Nov 30th of the same year in which the shares were sold? Im tempted to pay it sooner rather than later to ensure I don't spend the money and leave myself short to pay the tax bill
