I know the FIFO order applies when holding multiple lots of a stock. However, Ameritrade offers an online tool called GainsKeeper that allows the user to change the sale from FIFO to "Sell by ID". After selling to stock, the user can re-assign one or a combination of purchase lots. Is this OK to use for the IRS? I want to keep the early lots for long- term gain, and trade the later lots for short-term. If not, is the only other option to call a broker to place the sale?
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The relevant IRS Regs say that for a specific ID to be valid (a) you must make the designation *before* the sale happens, and (b) the broker must provide you with
*written* confirmation of your designation.Your description doesn't make it sound that either of those are happening.
-- Rich Carreiro snipped-for-privacy@animato.arlington.ma.us
I don't think so: if it's done after the sale, it's too late.
You have to specify which lots before the sale. I don't know if TDAmeritrade offers that online. Seth
If not, is the only other option to call a broker to place the sale? why don't you just open two acounts? One for your your long term investments and the other for trading. Then, you automatically know which lot your selling by what account it's in. duh
That works just fine if you know prior to purchase when you're going to sell. I don't know if they allow journalling specific positions from one account to another; that would let you buy everything in the short-term account, and move it to the long-term account at the appropriate time. TDAmeritrade allows you to specify lots online; you have to send them a "Versus Purchase Trade" letter of instruction. (See the help files for exactly how.) Seth
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