Question

Dahlia is in the 32 percent tax rate bracket and has purchased the following shares of Microsoft common stock over the years:

If Dahlia sells 800 shares of Microsoft for $40,000 on December 20, 2018, what is her capital gain or loss if she uses the specific identification method and wants to minimze her capital gain?

Microsoft common stock
Date Purchased	Shares	Basis
7/10/2008	400	$12,000
4/20/2009	300	$10,500
1/29/2010	500	$12,230
11/02/2012	250	$7,300

Answer 1

	Date purchased	Shares	Basis	Basis per share	Rank
	07-10-08	400	$12,000	$30.00	2
	20-04-09	300	$10,500	$35.00	1
	29-01-10	500	$12,230	$24.46	4
	11-12-12	250	$7,300	$29.20	3
	Basis of shares sold
	Date purchased	Shares	Basis
	20-04-09	300	$10,500
	07-10-08	400	$12,000
	11-12-12	100	$2,920
	Total		$25,420
	Sale consideration		$40,000
Ans	Capital gain		$14,580