Message Font: Serif | Sans-Serif
No. of Recommendations: 1
<<The lot designation of shares sold on trade confirmations is no longer required by the Internal Revenue Service. You may use the e.Schwab software to designate the shares sold, by matching tax lots for the position, after the trade executes.>>

I never knew that the lot designation was EVER required by IRS. Using the specific ID method is something established by the IRS in regulation. Regulations that the taxpayer must follow in order to secure the appropriate method. So I'm not really sure what they are driving at with this statement.

Nevertheless, I don't believe that it is Schwab's mission to protect the taxpayer on this issue. They can't be responsible for taxpayers with ugly records or no grasp of the law. Their system allows for matching of tax lots for the convenience of the customer (I would imagine). If the lots are matched, and other requirements are met (as outlined in the Tax Court case), all should be OK.

TMF Taxes
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.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
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.