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Selling NISA: FIFO?
Posted: Sun Oct 22, 2023 3:42 am
by banders
Suppose I bought the same shares or index funds each year in SBI NISA and when it's time for the 2019 to rollover, I decide to cash out before the end of 2023. Supposing 2019 NISA shows 100 units of whatever shares/index. Do I just sell 100 and they will automatically be removed from the oldest NISA year (2019), i.e., first in, first out? I've never sold part of a holding.
Re: Selling NISA: FIFO?
Posted: Sun Oct 22, 2023 4:29 am
by zeroshiki
Yes it is FIFO.
This is SBI's FAQ on it:
https://faq.sbisec.co.jp/answer/5ee33d3 ... 0011c1821f
Daiwa:
https://daiwa.dga.jp/faq_detail.html?id=1251
Nomura:
https://www.nomura.co.jp/terms/japan/se/A02496.html
All of them say that when you sell, it sells from the oldest per account (general, designated, NISA).
Re: Selling NISA: FIFO?
Posted: Sun Oct 22, 2023 12:06 pm
by banders
Many thanks, zeroshiki! I felt stupid asking the question but it seemed such a fundamental question that I hadn't seen addressed.
Re: Selling NISA: FIFO?
Posted: Tue Oct 31, 2023 4:25 am
by torata
It's clear that it's FIFO for NISA.
But my understanding for designated/tokutei accounts is that it's weighted average (at least that's what Monex seem to say). I think that's one of the differences between a designated and a general account (which I assume is FIFO).
I've not sold any part holdings so can't talk from experience though, so happy to be corrected.
torata
Re: Selling NISA: FIFO?
Posted: Tue Oct 31, 2023 9:07 am
by Tkydon
torata wrote: ↑Tue Oct 31, 2023 4:25 am
It's clear that it's FIFO for NISA.
But my understanding for designated/tokutei accounts is that it's weighted average (at least that's what Monex seem to say). I think that's one of the differences between a designated and a general account (which I assume is FIFO).
I've not sold any part holdings so can't talk from experience though, so happy to be corrected.
torata
For NISA, they have to account for which period the Units/Shares were purchased to know which NISA year was disposed of.
In the New NISA that will be especially important as selling will release Lifetime Allowance equal to the price paid for the Actual Units/Shares sold, so they will have to know how much was actually paid for the Actual Units/Shares sold to credit that amount back to the Lifetime Allowance.
For all other taxable accounts, Units/Shares are Fungible, they are all the same, so you cannot designate which Units/Shares are sold, but according to Japanese Tax Rules you have to set the Tax Basis as the Average Price Paid for all Units/Shares of the instrument owned, regardless of when they were purchased and then calculate the taxable gain from there.
Re: Selling NISA: FIFO?
Posted: Sat Dec 02, 2023 3:58 am
by 501
If it's FIFO, would it be safe to assume that a unit that was purchased in Nisa 2018 and rolled over into Nisa 2023 would not be sold before a unit in Nisa 2019 even though the Nisa 2018 unit was the acquired earlier? The rollover would trigger a change in its position in the FIFO queue, correct?