Pedestrians are reflected on a window of a securities company in Tokyo on Aug. 30, 2017.

The proposed first-in-first-out rule on stock sales has been struck in its entirety from the tax overhaul bill, which should give individual investors reason to cheer.

The controversial tax reform proposal had been revised to allow mutual funds to continue the practice. Now, the FIFO rule as it's known, has been taken out of the legislation altogether, CNBC senior contributor Larry Kudlow first reported.

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The , would have required individual investors to sell the first shares they bought. That would eliminate the flexibility to choose which lot to sell when investors have acquired multiple blocks of shares over time.

The net result often would be that investors would take a bigger tax hit on those stock sales because the oldest shares tend to have the biggest gains.