Shares sold within four weeks of acquisition

It's known that shares of the same class bought and sold within four weeks of acquisition can use the LIFO (last-in-first-out) method for calculating gains.

However, must you use this method when selling shares, if you have shares of the same class acquired less than four weeks ago?

Simple example:
- I buy 100 shares in Apple in January 2023 for $125.
- I buy another 100 shares in Apple in November 2023 for $180.

I want to sell 25 shares, and realise a gain of $1375 on the batch of shares acquired in January. Can I sell these 25 shares using the FIFO method or am I obligated to use LIFO?

I thought you worked off the Break Even Price (BEP).....But that was an assumption on my part. If that is correct the LIFO is not a consideration.

No, for (Irish) tax purposes you must use FIFO when selling shares of the same class. There is an exeception to that rule, it doesn't apply to shares bought and sold within four weeks. My question is, can you still use FIFO in that case or must you use LIFO?

RedOnion said:

Section 6A.3.1 in attached explains your scenario.

The use of different brokers doesn't make any difference.

www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-19/19-04-06a.pdf

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@RedOnion @Micks'r would either of you be able to shed any light on the subject, the above document has been taken down on Revenue as it's being updated

The link opened fine for me. Below is the relevant section. I'm far from being a expert though

6A.3.1 Disposal of shares within four weeks of acquisitionThe FIFO rules are modified in any case where shares of the same class are boughtand sold within a period of four weeks. Where shares are sold within four weeks ofacquisition the shares sold are identified with the shares acquired within that period.Furthermore, where a loss accrues on the disposal of shares and shares of the sameclass are acquired within a four week period, the loss is not available for offsetagainst any other gains arising and instead is only available for set off against anygain that might arise on the subsequent disposal of the shares so acquired in thefour week period - this provision does not apply where there is a gain on thedisposal.

Thanks. Seems pretty clear, in the context of the examples on that link, that the shares being disposed must be identified as the shares acquired within the last 4 weeks, even if you have shares purchased earlier.

Where shares are sold within four weeks ofacquisition the shares sold are identified with the shares acquired within that period.

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