Using Tax Lots: A Way To Minimize Taxes Read more:

Using Tax Lots to Your Advantage
Your choice of cost basis method can have a significant effect on the computation of capital gains and losses when you sell shares. For mutual fund shares, there are three common ways to identify the cost basis of the shares that you are selling: FIFO (first-in, first-out), average-cost method and specific-share method. For stocks, you could use FIFO, LIFO (last-in, first out) or specific shares. (For background reading on FIFO and LIFO, see Inventory Valuation For Investors.)

Read more: http://www.investopedia.com/articles/05/taxlots.asp#ixzz1bI6f3Ifq


http://www.investopedia.com/articles/05/taxlots.asp#ixzz1bI6Vg2kY