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Author: porter41 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121565  
Subject: FIFO Date: 9/26/2000 8:23 PM
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I posted the following question to foolish questions and was told to try this forum, so here goes.


I have a stock that was purchased over a number of years. I hold the
certificates for the eariest buys and some of the splits. The last split
is held by the ESPP administrator (Chicago Trust). Under the FIFO rules,
when I want to sell this stock do I have to sell the stock that I bought
1st, in which case I would have to send the certificates to Chigago Trust
or can I sell the ones that are allready held in the book account? Some of
the certificates are for multiple shares. Does the FIFO rule apply to only
multiple shares in one stock certificate or to all the stock? Also, the
stock is in four different owner names. Does the rule cover all names for
that stock or on a owner by owner basis?
Thanks.
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Author: TMFExRO Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 40346 of 121565
Subject: Re: FIFO Date: 9/27/2000 1:19 AM
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I have a stock that was purchased over a number of years. I hold the certificates for the eariest buys and some of the splits. The last split is held by the ESPP administrator (Chicago Trust). Under the FIFO rules, when I want to sell this stock do I have to sell the stock that I bought 1st, in which case I would have to send the certificates to Chigago Trust
or can I sell the ones that are allready held in the book account?


I don't think you quite understand FIFO. It's not a rule; it's a default if you don't specify what shares you're selling. I suggest you read the aritcle in the Investment Issues section of the FAQ.

Some of the certificates are for multiple shares. Does the FIFO rule apply to only multiple shares in one stock certificate or to all the stock? Also, the
stock is in four different owner names. Does the rule cover all names for that stock or on a owner by owner basis?


"I have" in your first paragraph doesn't fit with the four owners mentioned in the last. If you need more information after reading in the FAQ, please provide some clarification about the situation.

TMF ExRO
Phil Marti

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Author: porter41 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 40356 of 121565
Subject: Re: FIFO Date: 9/27/2000 10:25 AM
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The "I have" fits the 4 owners in the following way.
Stock xyz is in my name, my name and my wife's name, my wife's name and my name, and my wifes maiden name. These are all the same stock, just using xyz for an example, but purchased before and after we were married. As far as the IRS is concerned they are all under the same household and transactions would be reported on the same tax form.
Now for the question.
If I default to FIFO (by not specifing anything else) when I sell the stock, am I obligated to sell the oldest stock held in all of those three names or is it on an individual name basic.
Hopefully that clears ups the semantics.
I will now go check out "investment Issues"

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Author: TMFExRO Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 40371 of 121565
Subject: Re: FIFO Date: 9/27/2000 3:47 PM
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Stock xyz is in my name, my name and my wife's name, my wife's name and my name, and my wifes maiden name. These are all the same stock, just using xyz for an example, but purchased before and after we were married. As far as the IRS is concerned they are all under the same household and transactions would be reported on the same tax form.
Now for the question.
If I default to FIFO (by not specifing anything else) when I sell the stock, am I obligated to sell the oldest stock held in all of those three names or is it on an individual name basic.


IIRC, you have certificates for all but a recent split, which is held in book form. I don't know whether there are four or fewer book entry accounts, corresponding to the four name combinations you mention.

FIFO is the default when the shares being sold are not identified. Since you'll either be sending in a cert or specifying a book account from which the shares are to be sold, that action by itself specifies a block of shares from which the shares being sold are drawn. If you're not selling that entire block, FIFO says you're selling the oldest shares within that block. Which block(s) you choose to liquidate is entirely up to you.

TMF ExRO
Phil Marti

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