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Subject:  Averaging out of Stocks Date:  1/27/1999  1:34 PM
Author:  gyung Number:  9057 of 127638

I buy a lot of stocks/options that I average in and out of: Meaning I buy 500 shares of Dell on two different dats and then sell 400 on day 1, 400 on Day 2 and 200 on Day 3. I use TurboTax. Do I determine what shares I sell or is there an IRS rule telling me what shares I have to sell 1st, 2nd and 3rd?

Also, how do you allocate the commissions on these types of sales? Do you just divide it by 3?

Here's an example:

I buy 500 sh. Dell @ $50 and 500 @$100. I sell 600 @ $200 in 1998. Do I get to choose which shares I sold? (I want to sell 500 of the ones I bot at $100 and 100 of the ones I bot @ $50). Do I use 2 different lines on my Sch. D? How do I split the commissions?

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