Stock sales: FIFO or not?

At the end of October last year, I sold some stock. The stock had been purchased multiple times over the last several years, and I did not sell all of my shares. I knew which specific shares that I wanted to sell, to minimize the amount of taxes that I would have to pay. According to the TDAmeritrade website, they said that shares are sold on a FIFO basis, unless I sent them a letter of instruction indicating which shares I wanted to be sold. So after I sold the shares (but still the same day), I faxed them a letter. A couple days later, I received an email from them saying that they received the fax and that they would keep it in my records. But I was just going through my old statements, and I noticed that the statement that I received at the end of November has a section called "Positions Closed This Period." It indicates that I sold my oldest shares instead of the shares I had indicated in the letter that I faxed. If I have to report my sales on a FIFO basis, then I will pay more in taxes. I followed TDAmeritrade's directions for indicating specific shares, so can I just ignore what the statement says? My fear is that if I get audited, they will look at the statement, and I will be screwed.

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Reply to
curious
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It is my understanding that when selling specified lots, one is required to identify the lots at the time of the trade. Otherwise. one can choose amongst FIFO, average cost single-category and average cost double category as explained in IRS Pub 564;

Reply to
Howard Kaikow

According to IRS pub 550 the shares being sold must be

1) Identified AT THE TIME OF THE SALE and 2) you must receive written confirmation of this

Because you notified them after the sale occurred I doubt they used specific share identification.

Reply to
kastnna

Can't answer your questi>

Reply to
Geoff

The OP related to stock sales, not mutual funds. Stock sales only allow for FIFO or specific identification.

Reply to
A.G. Kalman

Can't answer your question, but recommend you consider Etrade. You click on the specific purchase you want to sell, and thats it.

Reply to
Geoff

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