Be Picky When Paring Your Losing Stocks

I find myself doing a lot of trading in the same stock. I may buy 100 shares, sell 50, buy 200 more, then sell 100. However, I'm not sure whether the IRS requires me to use first-in, first-out or last-in, first-out when accounting for my cost basis. Can I choose whichever is the most advantageous in a particular situation, or am I required to be consistent?

-- John Tucker

John,

With year-end tax selling just around the corner, many investors will be looking to unload some shares. And knowing which shares to sell can save you tons of tax dollars. ...