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Why Identification for Sales of Stock Should Be Preserved  


Author:  Kaye A.  Thomas.


Source: Volume 31, Number 02, Winter 2014 , pp.39-49(11)




Journal of Taxation of Investments

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Abstract: 

Much like the Brood II cicadas, a misguided policy idea has reappeared after a long period of dormancy. It would prevent a taxpayer selling part of his holdings in a particular stock from identifying which shares are being sold. Currently, proposals to make this change are extant in both the 2013 Camp proposals and the 2014 Obama Budget Proposal. The author argues that current law permitting taxpayers to identify shares when selling stock promotes fairness and neutrality, and that repeal of this provision would be a policy blunder.

Keywords: specific identification, adequate identification, capital gain, average basis method, 2013 Camp Discussion Draft, 2014 Obama Budget Proposal

Affiliations:  1: Attorney at Law.

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