Calculating Capital Gains Tax

Q: I have held a stock for over a year. I bought several lots of it on different dates in April, June and August of 2004. If I sell the number of shares I bought in April (780 shares), I assume that is taxed at the long term rate, correct? But.. what happens if I sell more than the 780 I bought a year ago - do I enter the 780 as a long-term gain and everything else under short term, even though it is just one sell stock trade? Also, anyone know what the long/short term capital gains rates are for Massachusetts?

A: > I have held a stock for over a year. I bought several lots > of it on different dates in April, June and August of 2004. > If I sell the number of shares I bought in April (780 > shares), I assume that is taxed at the long term rate, > correct? Absent a specific id of shares, you are assumed to be selling the oldest shares first. So yes, that is correct. > But.. what happens if I sell more than the 780 I > bought a year ago - do I enter the 780 as a long-term gain > and everything else under short term, even though it is just > one sell stock trade? Yes. > Also, anyone know what the long/short term capital gains > rates are for Massachusetts? Long-term = 5.3% Short-term = 12% See MA Form 1, Sched B, and Sched D. .

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