Considerations
The Specific ID method allows you to specify which shares you are selling. In order for the IRS to recognize a Specific ID sell, you must, at the time of the sell transaction, tell your broker which shares to sell by referencing the purchase date and purchase price. Your broker must then respond to you with a written confirmation of these instructions. This means you cannot decide during year-end tax preparation which lots were sold by Specific ID. You must specify a Specific ID sell at the time of the sell transaction. If you don't, the sell must be considered a FIFO First in, first out (FIFO) is the default method used when selling securities by brokerages, the IRS and GainsKeeper. FIFO sells your oldest lots first. sell.
To record a Specific ID sell, select the appropriate security type from the Manually Record Trades page. For example, to record a specific ID sell for a stock, click Stock to view a list of available transactions. Select Sell by ID from the displayed drop-down list. The Stock - Record Sell by ID Transaction page displays. This page enables you to select shares from specific lots to allocate to sell.
Note: If the Sell by ID transaction does not display for the selected security type, select one of the transactions from the drop-down list that displays. Once the selected transaction entry page displays, select Sell by ID from the Action drop-down list.