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Author: JeanDavid Big gold star, 5000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121338  
Subject: Re: Capital Gain or Loss? Date: 12/10/1997 4:04 PM
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<The brokerage usese FIFO
So if I sell they will say I made a gain
But I want to sell that I bought this year...
and maintain what I brought last year?

So what should I tell the brockerage to do this
and what should I tell IRS that is is a LOSS
not again as the brockerage says?>

The broker is your agent. You decide if you do FIFO, or identified shares, method, not the broker. If you wish to specify the lot of shares to be sold, do so. To be absolutely sure, put your request in writing and mail it to the broker. Then you use the confirmation slips to prove what you did to the IRS, if they care to see them (they won't unless you get audited).

This is reported on Schedule D, where there is a column for the purchase date and the purchase price, the sale date and the sale price (among other things).

Furthermore, the brokerage sends you a 1099-B (I think it is) that tells only the sale price, not the purchase price nor the gain or loss.
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