Long term vs short term gains (quick question)

[J_V]

If I Bought 100 shares of X 9/1/2006. And 100 more shares of X on 12/1/2006.

Can I sell 100 shares on 10/22/2007 and avoid short term capital gains tax, since its been over 1 year since my first purchase of 100 shares?

[Foghatlive]

Publication 17 has all this info. You can find it on IRS.GOV.

I have a terrible memory for this type of stuff and am too lazy to look it up, now, myself.

[spider]

Check w/ your broker b/c there are a lot of differences here, but I believe the default assumption at most is FIFO (first in first out) which is what you want here. I know Scottrade is like that. Etrade will let you specify which lot to sell at the time you sell. You can also do this with Scottrade but you actually have to do it over the phone.

Check the IRS pubs (google something like "tax lot capital gains") but the gist of it is you need acknowledgement from your broker at time of sale -- you can't wait until tax time to do it since that would let you game the system.

[stoxtrader]

[ QUOTE ]
If I Bought 100 shares of X 9/1/2006. And 100 more shares of X on 12/1/2006.

Can I sell 100 shares on 10/22/2007 and avoid short term capital gains tax, since its been over 1 year since my first purchase of 100 shares?

[/ QUOTE ]

you should be able to designate specific lot on the sale, depending on your broker.

unless the rules have changed, you would be able to be longterm on the first lot, but not on the second lot given those dates you mention.

[J_V]

Thanks guys. Really appreciate the time and effort. I'm gonna see if they let me designate lots, if not, I'm not gonna risk it.