HaShev
Gold Member
- Jun 19, 2009
- 17,661
- 7,020
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Because many investors buy varied shares and sell odd lots above or below the number amount of former purchases and do our buying to cost avg then the tax should also be based on cost avg to make it easier to figure and track for both parties.
By using cost avg, Investing won't be affected by trying to sell a specific lot or trying to figure out how many shares you first bought and which lot came first (like on the fly during quick need to trade).
The wash sale stuff is crazy for the broker to easily format and ledger for the investor to easily understand and or convey on taxes and even harder for the I.R.S. to monitor/check and compute, imagine the difficulty if first in first out is used. Cost avg method is SOOOO MUCH EASIER for all involved and most fair.
By using cost avg, Investing won't be affected by trying to sell a specific lot or trying to figure out how many shares you first bought and which lot came first (like on the fly during quick need to trade).
The wash sale stuff is crazy for the broker to easily format and ledger for the investor to easily understand and or convey on taxes and even harder for the I.R.S. to monitor/check and compute, imagine the difficulty if first in first out is used. Cost avg method is SOOOO MUCH EASIER for all involved and most fair.