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Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: Didi who wrote (2730)	1/18/2000 4:00:00 PM
From: Steve Lamont	Read Replies (2) \| Respond to of 5810

Disu and other looking at the lots idetification using an on-line broker... I got this response from the IRS based on alink someone provided earlier in the discussion (thanks again to that person). ==> NOTE: Our response to your tax law question appears below. If you have additional questions on this or other general tax law topics, please return to our web site at: (http://www.irs.ustreas.gov/prod/help/newmail/user.html to submit it. Please do not use your "reply" button to send a follow-up question. You might try to contact your broker to find out if they have a procedure in place to identify specific stocks sold. In order not to use FIFO, the stock must be adequately identified. This requires a written confirmation from the broker. For more details, please see Publication 550, Investment Income and Expenses, esp. pages 40 and 41. This and other publications can be downloaded from our website at irs.gov or ordered by calling 1-800-829-3676. Your Question Was: Can someone help me out with the rules for specifying lots when using an on-line broker.. I am under the impression that unless you tell your broker what specific shares lots you are selling then you must use FIFO (first in first out) method... but how does this work with on-line brokers. specifically if I have a long term position in WCOM purchased in dec 94.. the other day I double my position but my intent is only to keep these additional shares for a short period of time.. if i sell 1 2 my new position to get to my original position, again using an on-line broker, am I really selling my 94 shares??? or can I just pick what shares I want to sell myself. thanks for any advice. We are interested in your opinion and providing the best possible service to you. Please take a moment to answer our survey at: irs.ustreas.gov This answer is based on our understanding of the facts you presented in your question. Omission of facts may affect the answer given. Here's a tip for navigating the IRS homepage. Use the "search" button at the bottom of the web page. Enter key words or phrases when the entry box comes up. It could help you find your answer immediately. EMPLOYEE ID: 39-00517 Mr. Luft Tel.:(800)829-1040 msg#: 404795