NO.PZ2021090804000009
问题如下：
The private wealth management company ABC and its client Maggie discuss tax loss harvesting and tax lot accounting for one of Maggie’s accounts. Maggie has recently built a position in shares of MTT; Maggie’s purchase history is shown in the table below.
Now is 3 September 2021, and Maggie sells 100 shares. The current share price is $115.00. The tax rate for long-term holdings is 20%, and the tax rate for short-term holdings is 40%. A holding period of less than six months is considered short-term for tax purposes. Maggie has chosen HIFO (highest in, first out) as his tax lot accounting method.
Determine the tax lot that would be most tax efficient to sell given Maggie’s chosen tax lot accounting method. Calculate the tax liability/benefit from the sale.
选项：
解释：
Tax Lot B would be most tax efficient to
sell given Maggie’s chosen tax lot accounting method.
The formula to calculate tax liability/benefit is: Tax liability/Benefit = (Selling price − Acquisition price) × Tax rate × Number of shares.
HIFO is usually the most tax-efficient accounting methodology—since selecting the tax lot with the highest acquisition price will usually produce the smallest capital gain or the largest loss. So, under HIFO, Tax Lot B would be chosen, with an acquisition price of $126.00. Given that the shares were held more than six months (acquired on October 10, 2020, and the sale date is September 3, 2021), the long-term tax rate of 20% is applicable.
Tax under HIFO = ($115 − $126) × 0.2 × 100 = −$220 (tax loss or benefit)
NO.PZ2021090804000009
