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[[ I buy a lot of stocks/options that I average in and out of: Meaning I buy 500
shares of Dell on two different dats and then sell 400 on day 1, 400 on Day 2
and 200 on Day 3. I use TurboTax. Do I determine what shares I sell or is there
an IRS rule telling me what shares I have to sell 1st, 2nd and 3rd? ]]

If you are dealing with individual stock, you have only two options with respect to your basis:

1. FIFO (First In First Out); or
2. Specific Identification

You can read more about the Specific Shares method in the Taxes FAQ area. I'm sure that you already know about the FIFO method. We also discuss this in much greater detail in TMF Investment Tax Guide. Check it out.

[[ Also, how do you allocate the commissions on these types of sales? Do you just
divide it by 3?]]

No...each sale (or purchase) had it's own commission, and that commission will attach itself to those shares sold (or bought). Unlike mutual funds, you can't "average" your cost basis when you are dealing with individual shares of stock.

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