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Author: endokun Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121323  
Subject: FIFO? how can I avoid it? Date: 3/8/1999 6:22 PM
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The IRS assumes that you sell stock on a FIFO basis
if you don't specify which shares to sell to your
broker. How do you specify this, given that I'm
selling shares using a web-based broker?

Actual example:
I have 50 shares of Lucent in certificate form. In order to get some borrowing power to play with, I
deposit this into a brokerage account. I then
daytrade (I know, bad idea) 100 shares of Lucent,
buying and SELLing on the same day. Obviously, my
intention was that the 100 shares I sold are the
same 100 shares that I bought. There is no way
to specify which to sell however, so technically,
I sold the 50 shares I originally deposited, plus
1/2 of the 100 I bought that day. This will really
make complicated that which should not be complicated
at all, given that the original 50 shares I deposited
were there just to augment the borrowing power, and
that they are simply my "long-term" holding shares.
So what should I do if anything?
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