A friend of mine who is not mark-to-market recently opened an IB account, and is wondering if tranactions thru IB are ALL first in, first out, or if there is any way to keep track of separate lots of the same security for tax purposes (avoiding wash sales). I would call customer service, but if Def can answer here, my life will be easier.
Example - he buys 300 sh of XYZ - 100sh each at 35, 30, and 25. He sells within 30 days at 30, 35, and 40 (100sh at each price again). If these lots are not tracked separately, his first sale at 30 would be a wash sale (first in at 35, first out at 30) - which he wants to avoid.
Most other brokers would allow these lots to be kept separate to avoid wash sales (which is perfectly legal) - and thus his first sale at 30 would be the lot he bought at 25, his second sale at 35 is what he bought at 30, and his final 100sh sale at 40 is the lot he bought at 35. No wash sales, everyone's happy.
Example - he buys 300 sh of XYZ - 100sh each at 35, 30, and 25. He sells within 30 days at 30, 35, and 40 (100sh at each price again). If these lots are not tracked separately, his first sale at 30 would be a wash sale (first in at 35, first out at 30) - which he wants to avoid.
Most other brokers would allow these lots to be kept separate to avoid wash sales (which is perfectly legal) - and thus his first sale at 30 would be the lot he bought at 25, his second sale at 35 is what he bought at 30, and his final 100sh sale at 40 is the lot he bought at 35. No wash sales, everyone's happy.
