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Author: edcosoft Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121219  
Subject: Re: Specific Identification of Stock Electronica Date: 10/28/1999 9:33 PM
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Has anyone had any experience selling specific shares via the Internet (specifically Trading Direct)? I've never noticed a way
which you can identify specific shares via the web site. If anyone has had success or failure with this I'd appreciate your help.
Thanks


Interesting question. The IRS makes a sugestion that "adequate identification" would be accomplished if you wrote a letter to your broker and got a written answer back. Note that that is not the Rule, only one method that will accomplish the Rule.

It's interesting in that the IRS doesn't CARE which shares you sold, as long as you decide in writing with confirmation from your Broker, which he won't do. Now what does the confirmation accomplish? All I can think of is that it keeps you from changing your mind later (unless you throw away the letters and automatically then revert to FIFO because you can't identify different shares later).

Now that we think we know the reason and the shortcoming of the IRS method, you can accomplish the same thing by sending yourself a letter, postmarked and unopened. You can throw it away too. I think that's just as "adeuate" to identify as getting a letter from your Broker. In fact, more adequate since your Broker wont comply.

I'm not a lwyer, but instead of trying the impossible, try something else that works. The IRS will get their pound of flesh eventually.

Come to think of it, why would you change your mind anyway, and what would it accomplish that you couldn't have done originally? Also, the Construtive Sale and a few other Rules MAKE you effectively violate the FIFO Rules in some instances, and they don't apply when covering Calls, etc. Ed
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