Lot Relief Method
A method of computing the cost basis of an asset that is sold in a taxable transaction. There are five major lot relief methods that can be used for this purpose. They include FIFO (First-In-First-Out), LIFO (Last-In-First-Out), Dollar Value LIFO, Specific ID (a specific lot of securities or assets are chosen to use for the cost basis) and Average Cost (the average cost basis of all securities or assets purchased is used).
The choice of lot relief method can have a substantial impact on the amount of tax that may be paid when an asset is sold. There are several factors that can determine which method is best, including the amount of gain, the amount of income that year versus projected future income and the method that was chosen for previous sales.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Comic Relief USA — This article is about the American charity for the homeless. For the British charity for the needy, see Comic Relief (charity). For other uses, see Comic Relief (disambiguation). Comic Relief Founder(s) Bob Zmuda Type charity Tax ID No … Wikipedia
Europe, history of — Introduction history of European peoples and cultures from prehistoric times to the present. Europe is a more ambiguous term than most geographic expressions. Its etymology is doubtful, as is the physical extent of the area it designates.… … Universalium
literature — /lit euhr euh cheuhr, choor , li treuh /, n. 1. writings in which expression and form, in connection with ideas of permanent and universal interest, are characteristic or essential features, as poetry, novels, history, biography, and essays. 2.… … Universalium
United States — a republic in the N Western Hemisphere comprising 48 conterminous states, the District of Columbia, and Alaska in North America, and Hawaii in the N Pacific. 267,954,767; conterminous United States, 3,022,387 sq. mi. (7,827,982 sq. km); with… … Universalium
Germany — /jerr meuh nee/, n. a republic in central Europe: after World War II divided into four zones, British, French, U.S., and Soviet, and in 1949 into East Germany and West Germany; East and West Germany were reunited in 1990. 84,068,216; 137,852 sq.… … Universalium
arts, East Asian — Introduction music and visual and performing arts of China, Korea, and Japan. The literatures of these countries are covered in the articles Chinese literature, Korean literature, and Japanese literature. Some studies of East Asia… … Universalium
Wikipedia:Featured article candidates — Here, we determine which articles are to be featured articles (FAs). FAs exemplify Wikipedia s very best work and satisfy the FA criteria. All editors are welcome to review nominations; please see the review FAQ. Before nominating an article,… … Wikipedia
UNITED STATES OF AMERICA — UNITED STATES OF AMERICA, country in N. America. This article is arranged according to the following outline: introduction Colonial Era, 1654–1776 Early National Period, 1776–1820 German Jewish Period, 1820–1880 East European Jewish Period,… … Encyclopedia of Judaism
performing arts — arts or skills that require public performance, as acting, singing, or dancing. [1945 50] * * * ▪ 2009 Introduction Music Classical. The last vestiges of the Cold War seemed to thaw for a moment on Feb. 26, 2008, when the unfamiliar strains … Universalium
biblical literature — Introduction four bodies of written works: the Old Testament writings according to the Hebrew canon; intertestamental works, including the Old Testament Apocrypha; the New Testament writings; and the New Testament Apocrypha. The Old… … Universalium