#### tax_moron

##### New Member

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__These are all hypothetical numbers.. I'm just hoping to better understand how all this works from a taxation perspective.__

For simplicity sake, we'll just use CSPX for this example, an accumulating ETF so no dividend taxes to worry about.

If we make several arbitrary purchases of this over a couple of months such as:

- January 2019

**buy 10: €2,050 @ €205**

- February 2019

**buy 15: €3,555 @ €237**

- March 2019

**buy 10: €2,400 @ €240**

- July 2019

**buy: 14 €3,612 @ €258**

Total invested:

**€11,617.**

Lets say we want to sell 12 today (12/12/2019) @ €279: €3,348.

Lets say we want to sell 12 today (12/12/2019) @ €279: €3,348.

How do you go about calculating what tax is payable at this point? Considering you have sold more that the first transaction made in January. Would this calculation be the correct approach?

- Is it a first in first out approach?

- Well the 10 from January are worth €2,790 now, so the €740 gain is taxable.

- In addition to 2 from February are worth €558, so we take the original cost from this (which would be 2 x 237 = 474), leaving us with €558 - €474 = €84

- So totally: €740 + €84 = €824 taxable at 41% (€337.84 tax to be paid).

Would appreciate any guidance on this, and please let me know if this is the correct approach or not?