"curious" <curious[at]no.spam.com> wrote:

- quote -

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

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Howard Kaikow wrote:

- quote -

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

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- quote -

Can't answer your question, but recommend you consider
Etrade. You click on the specific purchase you want to
sell, and thats it. "curious" <curious[at]no.spam.com> wrote:

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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.

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"curious" <curious[at]no.spam.com> wrote:

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;

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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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