If I have a long time stock with one brokerage can I purchase the same stock at another brokerage and then sell it using "last in first out" to avoid long term cap gains.

[ActionDale]

I want to buy shares of ATT to use as a place to keep funds temporarily but get better return than I do in a savings acct.  I already own ATT in a different brokerage account and have held it for many years.  I do not wish to sell it now.  How can I do this without the irs making me follow the FIFO rule?  I want to use the LIFO rule.

[DDollar · Accepted solution]

Yes, you are able to identify whichever lots you wish to sell.  First in, First out (FIFO) is the default if you don't identify the specific lots or alternative method such as LIFO, or lowest cost, or higher cost.  You don't have to do it another broker/dealer, but there is no reason you can't do it at a different broker/dealer.

[MR_ED]

I don't know what broker you are using but when I sell stock, if I don't want to use FIFO which is the default, I tell them exactly what shares to sell. If I want a short term gain or loss, I sell those. If I want a long term gain or loss I sell those. Brokers do this all the time. Sit down with your broker and explain what you want to do. I have already done just that kind of sale this year and many times last year. I have always done this type of stategy with all of the brokers I have used.