So back in 2020 I bought a few shares of AMD and its generated a very healthy profit for me over that time.
Here’s the problem though: yesterday I bought a few more shares of the stock (less than the amount of profit I’ve generated); however, I changed my mind and decided to wait until this whole Iran/Elon suing OpenAI thing plays out and resold those shares this morning. What I didn’t think about though, is which shares I actually ended up selling. My brokerage app doesn’t let me select which shares I want to sell, so I read up on in and learned about the “First-in, First-out” principle. Now I’m assuming I just created a taxable event by selling those shares this morning - because the app probably sold my older shares with unrealized gains rather than the newer ones that haven’t had a chance to generate any gains. Can anyone confirm if that’s the case? I know it’s not an altogether bad thing to get ahead of your tax burden on unrealized gains, but I just don’t want to be surprised by a large bill when tax season rolls around.