02/08/2011,ABC,buy,100,20.00, 05/08/2011,ABC,buy,20,24.00, 06/08/2011,ABC,buy,200,36.00, 15/08/2011,ABC,sell,150,30.00, 19/10/2011,ABC,sell,40,35.50, 03/11/2011,ABC,buy,100,27.25, |
As an example, suppose the user buys 100 ABC shares at $20 on a particular day 1, 20 shares at $24 on a day 2, 200 shares at 36 on day 3 and then sells shares at day 4 at $30 each. Applying the longest held rule means that of the 150 shares sold on day 4, 100 were bought on day 1, 20 were bought on day 2, and 30 were bought on day 3. To calculate capital gain or loss, the price differential (i.e sale price-buy price) is multiplied by the corresponding number of shares. For this example, the calculation is (100*(30-20)+20*(30-24)+30*(30-36)), giving a capital gain of $940. |
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