A.I.M. Users Bulletin Board

[OldAIMGuy]

HI TAB, There is one scenerio that would favor LIFO....

We want to build up a reservoir of very old shares to pass on (at their low base) to another generation. We pay the penalty of the ST taxes all along and then the kiddies get cheap shares stepped up to the higher "date of death" value.

However, please note that the laws on stepped up base upon death are in the process of being phased out through 2010. So, even this weak arguement might fade.

Another way of looking at things is to think about "inventory turnover." In an average year I sell off about 1/4th to 1/3rd of my total inventory's value. This would mean that it would take an average of 3 to 4 years for the newest inventory to be eligible for sale. When I used to post my gains "longhand" I was usually looking back about 3-4 years to find the "oldest" shares for FIFO calcs. So this is a valid number after 14 years of AIMing.

Best regards, Tom