Maximise Loss, Maximise Gain, Minimise CGT: Smarter Tax Strategies Beyond FIFO and LIFO
Published on July 30, 2025 by Lee at Taxtallee
When it comes to selling your investments, choosing the right tax lot matching strategy can have a major impact on how much tax you pay—and when you pay it. While FIFO and LIFO are commonly known, taxtallee offers more powerful and flexible methods that align with your financial goals: Maximise Loss, Maximise Gain, and Minimise Capital Gains Tax (CGT).
These strategies go beyond simple date ordering. They’re intelligent, algorithmic approaches to deciding which shares you’re “selling”—when you own multiple lots of the same asset.
1. Maximise Loss
Ideal for: Tax-loss harvesting, offsetting gains elsewhere, or deferring tax liabilities.
How it works
This strategy deliberately matches your sale against the most expensive buy lots first. The higher the cost base, the smaller the gain—or the larger the capital loss—when you sell.
Example
- Buy 1: 100 shares @ $30
- Buy 2: 100 shares @ $20
- Sell: 100 shares @ $25
→ Maximise Loss sells the $30 lot first
→ Capital loss = $25 - $30 = –$5 per share
2. Maximise Gain
Ideal for: Locking in profits in a low-income year or using up carried-forward losses.
How it works
This strategy does the reverse: it matches the sale to the lowest-cost base lots first, to trigger the biggest possible gain.
Example
- Buy 1: 100 shares @ $10
- Buy 2: 100 shares @ $20
- Sell: 100 shares @ $25
→ Maximise Gain sells the $10 lot first
→ Capital gain = $25 - $10 = $15 per share
3. Minimise CGT
Ideal for: Achieving the best overall tax outcome across long-term/short-term gains and losses.
How it works
This strategy goes beyond gains and losses—it optimises your sales based on CGT implications. It follows this order of priority:
- Short-term losses (biggest first)
- Long-term losses (biggest first)
- Long-term gains (smallest first — eligible for 50% CGT discount)
- Short-term gains (smallest first — no discount)
It categorises lots accordingly, then sorts to minimise tax payable.
Example
- Short-term loss: $30
- Long-term gain: $10
- Short-term gain: $12
- Sell price: $25
→ Sells the $30 lot first for the loss
→ Then uses discounted long-term gain
→ Lastly uses short-term gains if necessary
Choosing the Right Strategy
Each strategy serves a different purpose:
| Strategy | Primary Goal | Tax Impact |
|---|---|---|
| Maximise Loss | Offset other gains, defer tax | Triggers largest capital loss |
| Maximise Gain | Realise profit in low-tax year | Triggers largest capital gain |
| Minimise CGT | Minimise tax owed | Smartly uses losses & long-term gains |
Why taxtallee?
Most platforms only support FIFO or LIFO. taxtallee empowers you with smarter choices tailored to your tax position, with real-time visibility into each strategy’s outcome before you sell.
This article is for informational purposes only and does not constitute personal taxation advice. taxtallee is not a registered tax agent. We recommend consulting with a qualified accountant or tax advisor regarding your specific tax situation.