Tax question

[Aurelius]

I was wondering how stocks which have more than one ticker are taxed. I'm thinking of stocks like:

GOOG - GOOGL

BYDDF - BYDDY - 1211

 

Are they considered as one entity or different investments?

[aws]

For the company the ticker symbol has nothing to do with how they are taxed.  You could have dozens of tickers under one tax entity, especially with different types of preferred shares.

 

If you mean the tax for the shareholders then it works just like any other stock - you are taxed on any gain above your basis.  Working out the basis can be a headache when shares are acquired in splits or spinoffs.

[Aurelius]

Yes sorry I wasn't very clear. I meant how are we as investors taxed.

Reason I ask is I once average up before a quarterly report after being up closed to 100% on the stock. It did not go as I had hoped. Later they stock dropped a bit and I wanted out partially. Instead of taking a loss and being able to tax harvest I now had to pay taxes.

If the stock instead had two ticker symbols I would then naturally invest in the unused ticker symbol when averaging up.

 

[Hielko]

In the scenario that you describe you could simply sell the shares with the highest cost basis first.

[Aurelius]

I guess there are different tax rules in different places. I was taxed as per my average cost.

[Hielko]

I guess there are different tax rules in different places. I was taxed as per my average cost.

You need a broker where are able to specify how you want to sell your stock.

[rb]

Aurelius,

 

You will have to provide a bit more information if you want an informed answer. In my browser I cannot even see what country you are from. Taxation is a very specific thing and it differs from country to country. It gets even more complicated when you introduce cross border investing: Fx treatment, double taxation treaties, ADR vs actual share ownership.

 

Tighten up your question and I'll try to provide some help.

 

rb

[Aurelius]

You need a broker where are able to specify how you want to sell your stock.

Don't think this is feasible. The tax rules are clear: you pay taxes of your profits that are calculated as = sell price less average purchased price.

 

RB

I appreciate your willingness to help. I realize taxes are very specific from country to country. My question was a bit more simple -> how do tax authorities treat purchases of companies that have two or more ticker symbols that basically move in synch e.g. GOOG/GOOGL, BYDDF/1211.HK... 

[Hielko]

You need a broker where are able to specify how you want to sell your stock.

Don't think this is feasible. The tax rules are clear: you pay taxes of your profits that are calculated as = sell price less average purchased price.

Don't think so: https://www.interactivebrokers.com/en/?f=%2Fen%2Fsoftware%2Fpdfhighlights%2FPDF-TaxOptimizer.php

[Aurelius]

I'm situated in Europe. Like I said I pay taxes on the difference between sell price & the average purchase price. But thanks.

[bookie71]

I believe that on Schwab, you select tax efficient or tax savings to select the more expensive cost of sales