Considerations
HIFO (high in, first out) is only one of several factors you need to consider when making an investment decision. While it is important to take taxes into consideration, you should also think about your risk tolerance, your overall financial goals and the specific investment. To determine if HIFO is right for you, talk with your tax advisor.
Procedure
To replace FIFO with HIFO as the default sell methodology:
Click the My Settings tab at the top of GainsKeeper. The My Settings page displays.
Click the Edit Brokerage Account link under Maintain your accounts. A page containing the sell lot sell methods for your portfolio and your mutual funds displays. After you have selected the method for sells and the method specific for mutual funds and reviewed the information, click Edit Acct Info to continue to update the sell methodology.
Caution: Remember to contact your broker or agent and place standing instructions to apply HIFO that satisfies IRS adequate identification requirements.