no average costing for stocks?


N

namsilat

I am using Money 2004 Delux. Let's use this example: I bought 500
shares of XYZ yesterday, then another 500 shares of XYZ today, I then
sold 500 shares of XYZ, Money pops up a question about which shares to
remove, FIFO, LFIO etc. How come there is no an option to cost
averaging the 1000 shares and remove 500 shares at the average cost?
 
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F

fuzzbutt

namsilat said:
*I am using Money 2004 Delux. Let's use this example: I bought 500
shares of XYZ yesterday, then another 500 shares of XYZ today,
then
sold 500 shares of XYZ, Money pops up a question about which share
to
remove, FIFO, LFIO etc. How come there is no an option to cost
averaging the 1000 shares and remove 500 shares at the average cost
*
Because that would be a violation of current tax law. The method
offered are all that are legal. You may average mutual fund shares
but not individual stocks. The most tax efficient method offered, i
used correctly, is specific identification, but learn the tax rule
ASAP to avoid things like wash sales. If you can't decide which metho
to use, the IRS default is FIFO.

Seriously, if you're playing the game, you'll do a lot better if yo
know the rules


-
fuzzbut
 

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