Tkydon wrote: ↑Mon Apr 08, 2024 5:11 am
Sorry for the long answer to your short question.
Tkydon,
Yet, another outstanding reply. Thank-you very much.
Your explanation allowed me to visualize more vividly what I was thinking.
The system of averaging the cost of units (instead of tracking each purchase at their specific price) is what I was worried about.
From my understanding of the latter part of your explanation, it would be a good idea to, instead of purchasing more units of the same fund/stock at a higher price, to purchase a different (but similar) fund/stock in order to not "mix" different unit costs.
Tkydon wrote: ↑Mon Apr 08, 2024 5:11 am
Sorry for the long answer to your short question.
Tkydon,
Yet, another outstanding reply. Thank-you very much.
Your explanation allowed me to visualize more vividly what I was thinking.
The system of averaging the cost of units (instead of tracking each purchase at their specific price) is what I was worried about.
From my understanding of the latter part of your explanation, it would be a good idea to, instead of purchasing more units of the same fund/stock at a higher price, to purchase a different (but similar) fund/stock in order to not "mix" different unit costs.
Would this be correct?
Yes, that is what I think.
I have no idea of your Tax Basis for the Units you already hold, but that will be inherited by the new units if you buy more of the same units.
As you specifically stated you want to make a short-term investment, in and out, I think it would be better to not mix that sum into the existing Units, but purchase units of a different instrument so that the tax basis is the actual purchase price for those units - Synthetic LIFO
:
:
This Guide to Japanese Taxes, English and Japanese Tai-Yaku 対訳, is now a little dated:
Tkydon wrote: ↑Tue Apr 09, 2024 4:35 am
Yes, that is what I think.
I have no idea of your Tax Basis for the Units you already hold, but that will be inherited by the new units if you buy more of the same units.
As you specifically stated you want to make a short-term investment, in and out, I think it would be better to not mix that sum into the existing Units, but purchase units of a different instrument so that the tax basis is the actual purchase price for those units - Synthetic LIFO
Cheers, thank-you very much! I will keep this in mind for future investments.
