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Subject:  Re: Identifying Shares To Be Sold Date:  11/1/2000  5:42 PM
Author:  TMFTaxes Number:  41414 of 129503

<<I did a search and did not see this - sorry if it is a repeat.>>

You must have missed the Taxes FAQ area where I have a series of articles dealing with "specific identification" of shares sold. You might want to go over there and check it out...just for some additional reading.

<<American Express allows you to identify which shares you are selling at the time of the sale. You can specify FIFO, lowest gain, highest gain and so forth.>>


<<According to the rules I have seen the broker must supply you with a written confirmation of this.>>

That's correct. You can't use the specific share method unless your broker provides you with a written confirmation of the trade.

<< American Express does this on the web site on a gains/losses worksheet. This worksheet is not editable by the user so cannot be changed.>>

Well, my understanding is that AmEx also provided additional written confirmation. I'm not an AmEx user, so I can't personally vouch for what they do or don't send. But I remember conversations with folks here in the folder that told me that AmEx provided a specific confirmation...not just something in a "gain/loss worksheet".

<< This must clearly be acceptable to the IRS as it follows the guidelines.>>

I don't see a question here. Since I'm not familar with what AmEx provides, I can't state if the "confirmation" would be acceptable or not.

<< I have asked Amex and they say it is.>>

And they might be correct. But I'm not sure that you want to let your broker provide you with tax information. If you're happy, then all you can hope is that the IRS is happy also. But I would suggest that you check out my thoughts on the issues in the Taxes FAQ area for some additional discussion. Then, based upon all of that information, make a decision if the information provided by AmEx meets the IRS requirements.

TMF Taxes

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