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

To: Colin Cody who wrote (916)	4/2/1998 11:21:00 AM
From: Jason Rooks	Read Replies (3) \| Respond to of 5810

Scenario: I own shares of a stock I like for the long term. I have been buying shares over time as the company expands at different prices. Now, this stock has some swings based on its industry movements as well as new developments. I'd like to do some short term trading as news comes out, but I would not sell my core holdings, but just buy some more and then sell those new shares. My hesitancy is the First In, First Out policy of the IRS that would tax my capital gains based on the first shares which have the lowest cost basis. Thus, any day trading profits would be eaten up with the capital gains. Question, how do I notify my broker which shares I am selling? {I do online trading with Datek.} Will I have to call my broker to sell the recently bought shares instead of my internet trading, or does it have to be in writing? Do I have to notify my broker prior to the sell order??? Any thoughts or advise would be appreciated. Thanks in advanced.