Short vs Long Term Gains when using Multiple Brokerages

Forum|Forum|4 years ago
December 20, 2021
6 replies
63 views

When providing multiple 1099-B provided by different brokers like Robinhood or Schwab, etc, is long term and short term capital gains calculated across all brokerages?

Say one is using FIFO (First In, First Out). That person sells 10 shares of ABC stock on 11/10/2021 with Robinhood which they bought on 6/10/2021 but they also bought 10 shares of ABC stock on Schwab back on 5/5/2020. Does TurboTax reference the 10 older shares on Schwab as its basis for tax purposes?

If only referencing Robinhood, this would show as a short term gain.

If referencing across all brokerages, this would show as a long term gain.

Critter-3

Level 15

Does TurboTax reference the 10 older shares on Schwab as its basis for tax purposes? Of course not since you did not sell those shares. FIFO system only works when you complete the sales in the same broker account.

ALL sales from ALL sources will end up on the SAME Sch D on the return and be netted against each other.

AnkinAuthor

Level 2

And compare the older purchase dates?

fanfare

Level 15

That's how I'm figuring it. The stocks are not fungible across all platforms.

Trades in Robinhood would be based on the dates of those position for both long and short term gains within Robinhood; whereas trades on Schwab would be based on the dates of those positions for that platform.

This the issue, I'm looking at with regards to stocks and managing tax harvesting strategies.

In crypto things tend to be a little more fungible across wallet addresses for the purpose of tax basis.

The wash sale rules apply across all broker accounts you may be using including tax-deferred accounts.

For purposes of the holding period, you can use the buy-date of any shares you want, but then may have to explain the mismatches on your 1099-B documents to the IRS.

This would be a record-keeping nightmare. and is not worth the effort involved.