A.I.M. Users Bulletin Board

[Toofuzzy]

Hi LH RE: Taxes

>>>>Hi TF, I just had not heard of HIFO before and thought you were involved with Tax preperation. It seams to me another delay tatic and I don't vote for that kind of planning! I remember the first year that I made money and my accountant advised me to spend about $60,000 on a business remodel. When I was done, I told him never to do that again as it only saved me $6,000 on my Federal bill!!! <<<<<<

I have worked the last two tax seasons for HR Block. It doesn't mean I know everything and I doubt anyone could (well maybe Bernie>>grin<<)

Anyway like I wrote in the last post you can choose any method (LIFO, FIFO, AVE Cost, indvidual lots)you want but you need to be consistent and keep good records.

In terms of AIMing you are probally NEVER going to sell SOME of your shares. If that is the case the ones you continue to hold should be your cheapest. That will keep your taxes the lowest. Selling your expensive shares first will keep your taxes lower. It doesn't cost you any more to do that. It is not some expensive delaying tactic. If someone ends up inherenting thoes cheap shares the cost basis is stepped up to the price at the time you pass away.

If you have any other tax question e-mail me and I will ATTEMPT to answer it though I find in taking advanced tax courses that I tend to find out how much I do not know as apposed to learning any more because of how complicated it is and the exceptions to the exceptions.

Toofuzzy




Take the road less traveled. It will make all the difference.