The FIFO method
When you sell shares you bought at different times, which purchase counts? German tax law gives one answer: the oldest shares are always sold first. This is the FIFO method (first in, first out), and capi.tax applies it for you automatically.
A simple picture
Imagine your shares lined up in the order you bought them, like people in a queue. When you sell, the ones at the front — your oldest shares — leave first. You don't get to choose a different order; German law requires this one (§ 20 Abs. 4 EStG). Each company and each fund has its own separate queue.
An example
Say you buy Apple shares twice and then sell some:
- In January you buy 100 shares at 150 $.
- In March you buy 50 more at 160 $.
- In May you sell 75 shares at 170 $.
Because the oldest shares go first, those 75 sold shares come entirely from your January purchase. The gain is figured against the January price of 150 $ — converted to euros at the official Bundesbank rate for each trade date. Your remaining 25 January shares and all 50 March shares stay in your portfolio for next time.
Why it can affect your result
Since the oldest purchase is always used first, the cost of a sale depends on your whole history with that investment, not just your most recent purchase. If you upload only part of your history, the result can change.
If a sale has no matching purchase in your file — for example because you bought the shares years ago at a different broker — capi.tax points it out so you can add the missing purchase yourself.
capi.tax prepares your data; it is not tax advice. Please review the figures and ask a tax advisor (Steuerberater) about your personal situation.