I changed brokerages last year. The old brokerage sold the partial shares of each stock (I reinvest all dividends) before transferring the account to the new brokerage.
The 1099B of the old brokerage has reported these sales as long term; I want them to be short term. Will I have a big problem with the IRS if I change the status of these sales? Or is the status already set in stone because the brokerage decided to classify the partial shares as FIFO.
/BAH
Unless you directed the brokerage to use LIFO when the fractional shares were sold, you are stuck with FIFO. That is the default method per IRS guidelines.
Ira Smilovitz, EA
were sold, you are stuck with FIFO.
They didn't ask me; I wanted the fractional shares transferred, not sold.
Oh, ratzafratz (I cleaned up that swear.) The fractional shares were just bought which makes them short term. However, I will not try to fight city hall and go back and recalculate profit/loss based on the original purchase price. I now have a headache....
Thank you for answering. ;-)
/BAH
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