Senate Tax Proposal Forces FIFO

[ItsNotAboutTheMoney]

So, if individual investors are forced to FIFO, they may hold shorter term and trade more often - possibly shedding more tax revenues and cutting peoples' desires to "invest for the long-term". Unless you invest for your next generation and expect cost-basis adjustment to handle the tax shelter. They either want us to trade-em-up or not-die to get the revenues "they are owed". No wonder people take their money off-shore.

Under FIFO I think that long-term investment is fine and short-term investment are both fine. What it would seem to stop would be _mixed_ investment in individual securities.

 

[ohmman]

According to CNBC, it appears to have been struck.

 

[Curt Renz]

Have we figured out whether this mess is in the final conference committee bill yet? And what the exact language is?

Forbes - yesterday: It's Beginning To Look A Lot Like Tax Reform: Here's What's In The Final Version

"Under the conference bill, the same capital gains rates will apply but the brackets will be adjusted. Additionally, those controversial FIFO (first in/first out) sales rules will not apply."

We appear to have won on this one. As I noted above, my concern was passed to upper management at TD Ameritrade. They then lobbied Congress on the matter and discussed their concern in the media. It was my friend Bob Gordon at Twenty-First securities who first notified me and apparently got the ball rolling. He also appeared in the media regarding this issue.