@Solar Eclipse wrote:
It leaves me with only two possible conclusions: Either 1) Clients and CPA's have been oblivious this has been transpiring for ages or 2) This is actually an acceptable method.
Your possible conclusion #2 is probably correct. "This is actually an acceptable method." Apparently there is no law or regulation that specifies the value to be used, and there is no IRS guidance. If the rules are unclear or nonexistent, each brokerage follows the conclusions of its own tax experts or lawyers, and they may reach different conclusions. No one is "getting away" with anything. If there are no explicit rules, no rule is being violated.
