Can I use LIFO (stock bought in 2015) to determine my costs basis for an individual stock I bought throughout the years (2012, 2013, 2015) and sold a portion last year?
If you do not make an adequate identification , the IRS will treat the shares you bought first as the shares being sold under the first-in, first out (FIFO) rule. If your stock is held by your broker, the IRA considers that an adequate identification is made if you give instructions when you sell your stock,about which particular shares are to be sold, and you receive a written confirmation of your instructions from the broker or transfer agent within a reasonable time. I do this often and the way I handle it is I call my broker and outline the exact shares I want to sell. I then email the instructions and she emails me back that those shares will be sold. My end of the year 1099-B information will then have the correct basis for the shares I sold. Hope this helps.
If you do not make an adequate identification , the IRS will treat the shares you bought first as the shares being sold under the first-in, first out (FIFO) rule. If your stock is held by your broker, the IRA considers that an adequate identification is made if you give instructions when you sell your stock,about which particular shares are to be sold, and you receive a written confirmation of your instructions from the broker or transfer agent within a reasonable time. I do this often and the way I handle it is I call my broker and outline the exact shares I want to sell. I then email the instructions and she emails me back that those shares will be sold. My end of the year 1099-B information will then have the correct basis for the shares I sold. Hope this helps.