Reading 17 low basis stock

[jxjiao]

hello
Q1: I dont fully understand the meaning of completion portfolios , also
when the book talks about the single asset completion portfolios, it talks about investing different industries alongside the low basis stock. Does that mean multi-asset class ?
Q2: a constuctive sale is allowed for average investors, but not for investors with low basis stocks? how does IRS differentiate these two investors?
my head doesnt go straight today
thanks

 

[cpk123]

Completion portfolio in its simplest sense
you have a whole bunch of other assets present with you (a well positioned investor).
you reduce your low basis stock position. Since it is low basis - you would incur a capital gain.
you use sales from other parts of your portfolio (losses on those parts) to be able to offset the loss.
[concept of HIFO tax stuff] used in a portfolio context.
single asset class completion - not sure where you read that multiple industries are allowed. It is using a desired index or basket of securities to complete the portfolio along with the low basis stock.
IRS would differentiate between the two by looking at the holdings of the person. Also given the name of the person itself (given that at some point in time he must’ve been someone famous and the company he started (given that he must’ve been a famous entrepreneur) - it should be pretty easy.