A.I.M. Users Bulletin Board

[LemonHead]

Hi TF, I've only seen this once and don't remember if I posted it. What about HIFO?

http://www.sellsignal.com/PUBLIC/EDU/MINTAX.ASP

[snip]SellSignal Education Center

Defer, Reduce and Eliminate Taxes on Capital Gains.
There are several tactics SellSignal uses to help defer, reduce, and potentially eliminate the taxes on realized gains.

By employing certain accounting practices and focusing on the nuances of the tax code, you can tax optimize your portfolio by lowering your tax bill.

Inventory Management using HIFO Accounting

Inventory management is the first step towards understanding how to lower your capital gains taxes. There are three types of accounting methods for managing your trades: FIFO, LIFO, and HIFO.

These acronyms describe methods of accounting for your gains and losses (closed positions) in a particular stock.

FIFO is First In First Out. It means that you sell the oldest purchases first.
LIFO is Last In First Out. It means that you sell the most recent purchases first.
HIFO is Highest Cost In First Out. It means that you sell stocks that have the highest cost basis first.[snip]

What do you think?
Keith