Tax lot on sale of a stock

[musica117]

I had 100 shares of a company stock bought more than one year ago. In December I sold 50 shares of the stock to realize long term capital gains with LIFO. I bought back the 50 shares within 10 minutes of selling them. Now when I look at my account it shows that I bought the shares first in December and then sold the 50 shares making it short term. I think my instructions were correct so why did it treat it this way. Can this be corrected?

[Bsch4477]

If you believe that the bought date is incorrect discuss it with your broker. 

[musica117]

Thanks! I have heard that TD Ameritrade does not adjust the tax lot method! I will call them tomorrow because I know I couldn’t have possibly bought shares without selling as I had not enough cas in my account 

[fanfare]

@musica117 

" I sold 50 shares of the stock to realize long term capital gains with LIFO."

To do what you're looking for you had to use FIFO.

[Mike9241]

The LIFO method is one that you have to elect affirmatively with your broker. The main benefit of the LIFO method is that the shares that you've owned for the shortest period of time tend to be the ones that have the smallest taxable gain, and so you can make a sale without incurring a large tax bill. However, because the LIFO method involves the shares that you bought most recently, any tax that does result will sometimes be taxed at higher short-term capital gains rates. 

The question I could not find an answer to is "does the use of LIFO apply for the whole year or to each separate sale".  if it does, then using LIFO the last shares purchased would be used against the first sale during the year even if the purchase was after the sale.   

a better way is to use the specific identification method.  you select the lot that is to be sold and you inform your broker that you want to sell x shares of stock y you bought on xx/xx/xxxx.  this should be on the confirm. thus you can override any default method you've chosen.

[musica117]

Thanks so much for taking the time to look up an answer for my question. It does not make sense the LIFO would apply to the whole year even if the purchase is after the sale. That would be for shorts. I will call them and try to fight but I don't know if I will be successful.

[musica117]

I had all of these shares at the same time (prior to one year). I had selected LIFO because I had some other stock that I was swing trading and had for long term gains. 

If I had FIFO then I would be fine in this case I guess, but I really didn't think it mattered.