3251: Specific Identification of Shares by The Mad Fientist on How to Boost your Investment Returns

Optimal Finance Daily - Financial Independence and Money Advice

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Episode 3251:

The Mad Fientist breaks down a powerful but often overlooked tax strategy that can significantly boost your investment returns: specific share identification. By choosing exactly which shares to sell, you can minimize capital gains taxes and optimize long-term wealth accumulation, a simple tweak with massive financial upside.

Read along with the original article(s) here: https://www.madfientist.com/specific-share-identification/

Quotes to ponder:

"Most brokerages default to FIFO (first-in, first-out), but that’s not usually the most tax-efficient method."

"With specific share identification, you choose which shares you sell, which means you can control how much tax you’ll pay."

"Taking a few minutes to choose which shares to sell can save you thousands of dollars over your investing lifetime."

Episode references:

Vanguard - Cost Basis Methods: https://investor.vanguard.com/investor-resources-education/taxes/cost-basis

IRS Specific Identification of Shares: https://www.irs.gov/publications/p550#en_US_2023_publink100099023

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