Anavex Life Sciences Corp (AVXL)

[Cbdpotential]

Perhaps I wasn't very clear
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Under the FIFO method, you would sell the first 800 shares that you purchased two years ago, resulting in a long-term gain of $20,000, with a tax bill of $3,000. On the other hand, if you choose to sell a specific tax lot instead, you can sell your most expensive shares first (even though they are short term) and still have a lower tax bill of $2,060.

http://www.investopedia.com/articles/05/taxlots.asp?lgl=bt1tn-no-widget




In 2011, you were required to use the same method for each fund even if the fund is held in multiple accounts. Starting in 2012, you are allowed to use average basis and other methods for different accounts even in the same fund. You may also change accounting methods at any time. Thus, if you made your first sale as FIFO, you may specifically identify another sale as long as you do not sell the shares already sold. If you change to another method from average-basis, all shares keep their average basis (i.e., they retain the basis computed prior to the change).

You may also choose to use different methods for different funds held in the same account; for example, you might use FIFO or average basis for a bond fund (for which the methods make little difference) and specific identification for a stock fund.