Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: lavalamp who wrote (198)	11/5/1997 10:27:00 PM
From: Zeuspaul	Respond to of 5810

Lava, 1040 schedule D refers to publication 550 for details of cost basis. The latest pub 550 is as of Jul 02 1997. My interpretation is that you must have a written confirmation of the lot sold from the brokerage to determine basis or you must use FIFO. Maybe Schwab has a more recent document? Or? Stocks and Bonds If you can definitely identify the shares of stock or the bonds you sold, their basis is the cost or other basis of the particular shares of stock or bonds. However, if you buy and sell securities at various times in varying quantities and you cannot definitely identify the shares you sell, the basis of the securities you sell is the basis of the securities you acquired first. Except for certain mutual fund shares, discussed later, you cannot use the average price per share to figure gain or loss on the sale of the shares. Identification. You will make an adequate identification if you show that certificates representing shares of stock from a lot that you bought on a certain date or for a certain price were delivered to your broker or other agent. If you have left the stock certificates with your broker or other agent, an adequate identification is made if you: 1.Tell your broker or other agent the particular stock to be sold or transferred at the time of the sale or transfer,and 2.Receive a written confirmation of this from your broker or other agent within a reasonable time. If you bought stock in different lots at different times and you hold a single stock certificate for this stock, you will make an adequate identification if you: 1.Tell your broker or other agent the particular stock to be sold or transferred when you deliver the certificate to your broker or other agent, and 2.Receive a written confirmation of this from your broker or other agent within a reasonable time. Stock identified this way is the stock sold or transferred even if stock certificates from a different lot are delivered to the broker or other agent. some bold added irs.ustreas.gov