I would appreciate some opinions whether the following scenario might be treated as a FIFO or LIFO for capital gains tax purposes:
Purchase 1000 shares in company A for €1,000 in 2010 through a foreign brokerage account. The investment is left to grow and is now worth €5,000, so a capital gain on paper of €4k. Today you purchase 1000 shares in the same company A for €5,000 through, say, your Degiro account and tomorrow you sell the original 1,000 shares in the foreign brokerage account also for €5,000.
Because the purchase and sale of the shares in company A occurred within 4 weeks albeit through different brokerage accounts, is this treated as FIFO or LIFO for capital gains tax purposes? Or to put it another way, is there a capital gains tax event this year on the sale of the original shares in the foreign brokerage account or is it pushed out until the shares purchased today are eventually sold sometime in the future?
Purchase 1000 shares in company A for €1,000 in 2010 through a foreign brokerage account. The investment is left to grow and is now worth €5,000, so a capital gain on paper of €4k. Today you purchase 1000 shares in the same company A for €5,000 through, say, your Degiro account and tomorrow you sell the original 1,000 shares in the foreign brokerage account also for €5,000.
Because the purchase and sale of the shares in company A occurred within 4 weeks albeit through different brokerage accounts, is this treated as FIFO or LIFO for capital gains tax purposes? Or to put it another way, is there a capital gains tax event this year on the sale of the original shares in the foreign brokerage account or is it pushed out until the shares purchased today are eventually sold sometime in the future?