Must I use fifo when selling mutual funds? I transferred shares from a fund company to a bank. The bank says all transferred shares must be sold at fifo per a IRS reg.

[alangorny116]

I transferred shares in a regular brokerage from a fund company to a bank investment account. The bank is telling me that all transferred shares must be sold using FIFO per some IRS reg. Is this correct?

[DDollar · Accepted solution]

No, that is not correct.  With individual stock, you're stuck with either the First In, First Out (FIFO) method or the Specific Shares method. With mutual fund shares, you can use either of these two methods, or you can average the cost of the shares. You do NOT have to use FIFO!