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Old 03-01-2010, 11:05 AM   #8
sixpacked
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Join Date: Jan 2008
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Quote:
Originally Posted by Agamemnon View Post
Interesting. I'm surprised that I wouldn't be able to, for example;

Buy 1000 shares of X Stock at $1.00

Buy another 1000 shares of X Stock at $1.50

Sell 1000 shares of X Stock at $2.00

It sounds like I can't designate the second share purchase as the exact shares being sold (ie, bought at 1.50 sold at 2.00), reducing your capital gains compared to selling the chunk bought at 1.00 and sold at 2.00. Maybe I'm being confusing.

I guess the issue is if you use the same account to buy the shares and they end up sitting in the same pile, ONLY the average cost is used to determine capital gains/losses on all subsequent sales/purchases?
The principle at question is "Identical Propeties", as long as they are the same class/type, etc of stock you must use the average cost.

http://www.cra-arc.gc.ca/tx/ndvdls/t...cltng-eng.html
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