3251: Specific Identification of Shares by The Mad Fientist on How to Boost your Investment Returns
The Mad Fientist breaks down a powerful but often overlooked tax strategy that can significantly boost your investment returns: specific share identification
Optimal Finance Daily - Financial Independence and Money Advice · Optimal Living Daily | Diania Merriam
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Show Notes
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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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