What is FIFO exactly? First in first out,This is for my tax liabilities,
For tax puorposes-
If I buy 100 shares of a stock at $1 and then buy 100 more the next day for $2, and the next week I sell 100 shares for $1.50, I have actually made a profit of $50 - $7 commisions for a net profit of $43, which I would be in a 28% tax bracket, correct? Now I sell the llast 100 shares for $1.50 a month later. Now have I lost $50 & -$7
commision = -$57.00, correct? This would be wrote off as a $57 loss,correct? Thanks in advance.
Best Answer
168 points
madman87 answered 4 months ago …
FIFO is termin in bookkeping, a method of inventorization in companys they use, how do exacly they count their inventories, there are few differents methods also. LIFO-last in last out for example. But i cant understand how it could depend on your tax liabilities if only you are not a firm.
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