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URL:  http://boards.fool.com/yes-you-can-use-specific-identification-method-if-29458104.aspx

Subject:  Re: Taxes on Investing Profits Date:  8/4/2011  7:23 PM
Author:  wsmit56 Number:  113845 of 121095

Yes, you can use specific identification method if you have records to support the cost basis you are using, and your broker can execute a specific identification sale. However, per the IRS, once you choose a method for a particular fund, you must stick with it. That means that if, for a specific fund, you at one time used average cost basis to report basis, you must continue to use average cost basis. Below is an excerpt from an IRS frequently asked question posting.

Once you elect to use an average basis method:
You must continue to use it for all accounts in the same fund.

Good luck.

Bob
Tax Preparer Learning Systems, LLC
www.taxpreparerlearningsystems.com
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