10/21/2026
Your statement says a fund is up $12,000. Do you know what is inside it?
Every purchase is its own "tax lot," with its own date and its own gain or loss. In my example (hypothetical), that fund has one lot up $20,000 and two lots down. The big gain hides the losses.
Now say you need to raise $56,000 to rebalance. Sell the oldest lots first and you create about $28,000 in gains. Pick the loss lots and the same $56,000 creates $22,000 in losses.
That second view is not on your statement. Most people have never seen it. Has anyone ever shown you yours?
Here is what I check before any sale in a taxable account:
https://lyonsresources.com/blog/tax-lots-explained
