Message Font: Serif | Sans-Serif
No. of Recommendations: 0
<<Say I hold shares of a stock in a DRP, and then I go out and buy xx shares of this same stock through a discount borkerage. I hold most of the shares of stock in the DRP program in certificate form, and they were not purchased at the same discount borkerage as the later lot. I then sell the later lot. Since this is the only lot I purchased there, and since it is obviously not from the first lot (since I hold the actual certificate for those), do I need to do anything special to claim the later basis?>>

Nope. One of the ways around the specification rules (broker notification and confirmation) is to hold the shares in certificate form. It's really cumbersom. But if you decide to do that, you can ALWAYS specify the shares that you are selling, because you are turning in the actual stock certificate.

In this case, while you aren't turning in the certificate, you are turning in everything BUT the certificates. It would sure seem to me that this would qualify as to specifying these specific shares.

Thanks Roy. That's what my logic told me, but I just wanted to be sure. (We all know how far one can coast on logic in the IRC.)

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.