Hello Forum.
Please let me know whether I am getting this right:
Generally, it is better to use HIFO (sell the highest cost basis lots first), to realize large losses and benefit from tax loss harvesting (that way, your tax liability is lower and you “shelter” your gains by paying less of an amount due to taxes).
However, if you are in a current low tax rate environment (with the expectation that the rate will subsequently increase), it is better to use LIFO first, i.e. selling the lowest cost basis lots first. This way, you are deferring realizing the largest losses and harvesting for the subsequent period, when the rates are higher.
Thank you!