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Investors & landlords
Ordinarily, the initial cost basis method should not be changed. Because you elected Specific Share Identification, that is the method you should use; however, through no fault of your own, it appears you cannot satisfy the conditions that Specific Share Identification requires. The requirements of Specific Share Identification are contained in IRS Publication 550 at page 43, the link to which is included below.
You mentioned you may use Average Cost. The IRS considers Average Cost to be an acceptable method. You can find out more about Average Cost in IRS Publication 550 including how to apply Average Cost in connection with non-covered securities at page 44.
Here is a link to IRS Publication 550.
Investment Income and Expenses
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‎April 4, 2023
3:44 PM