Short vs Long Term Gains when using Multiple Brokerages

Forum|Forum|4 years ago
December 20, 2021
1 reply
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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?

Critter-3

Level 15

Basically if you wanted to sell the older stock you should have done so in the broker account where they were housed. Since you sold the newer stock in the robinhood account then that is what will be reported to the IRS.

The IRS will not compare your purchases with your sales if that is what you think ... they rely on the broker to report the sale on the 1099-B and that is what they go off of. If you choose to change what the broker sends to the IRS then be prepared to prove your entries if the IRS audits you.