Selling Shares? Here’s How to Minimize Taxes on Your Gains

Selling Shares? Here’s How to Minimize Taxes on Your Gains
The size of your tax-reportable gain (or loss) will depend on which lots you sell. Dreamstime/TCA
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By Kim Clark From Kiplinger’s Personal Finance

Let’s say you’ve been regularly buying shares in a booming tech company over the past few years, but now you want to start taking some of those profits. Your brokerage makes it easy-peasy: Just choose the number of shares you want to unload and click the “sell” button. But investors can end up paying more in taxes than they have to if they aren’t smart about choosing which of their shares to sell based on a factor known as cost basis.