Is anyone elses cost basis messed up?
- Thread starter El_Cubano
- Start date
Did you do position transfers? If not, maybe it’s due to wash sale adjustments?
https://www.interactivebrokers.com/en/index.php?f=tax
https://www.interactivebrokers.com/en/index.php?f=tax
No position transfer. But these postions were newer established ones with some previous entries/exits. I've never seen wash sale adjustments modify my cost basis inside of TWS. One day my basis was one thing and next it was another. But if anything these adjustments from a wash sale should lower your basis not raise it.
I've never seen that happen. Only time I have noticed my cost basis changing is due to wash sale, purchase or sale, or a split.
If you ran the tax optimizer it may have adjusted your cost basis if possible. For example, say I bought 50 shares of XYZ at $50 and another 50 shares of XYZ at $100. My cost basis is $75. I then sell 50 shares. Your cost basis can change depending on what 50 shares you decided to sell. Did you sell the ones purchased at $50 or the ones purchased at $100? If you elected to sell the shares purchased at $50, then your cost basis is now $100. If you elected to sell the shares purchased at $100, then your cost basis is now $50. By default, I think your cost basis would be $75 unless your broker tries to minimize your realized gains by default or it may try to realize long-term gains over short-term gains where possible for tax efficiency.
If you ran the tax optimizer it may have adjusted your cost basis if possible. For example, say I bought 50 shares of XYZ at $50 and another 50 shares of XYZ at $100. My cost basis is $75. I then sell 50 shares. Your cost basis can change depending on what 50 shares you decided to sell. Did you sell the ones purchased at $50 or the ones purchased at $100? If you elected to sell the shares purchased at $50, then your cost basis is now $100. If you elected to sell the shares purchased at $100, then your cost basis is now $50. By default, I think your cost basis would be $75 unless your broker tries to minimize your realized gains by default or it may try to realize long-term gains over short-term gains where possible for tax efficiency.
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From my experience in trading futures, TWS doesn't know how to handle partial position closures as far as the Unrealised P&L goes. Something goes awry when the cost of a closed position is taken into account.
I keep my own records for gains and losses on each closed futures position. My records always match the daily Activity Statement, but don't agree with TWS unrealised P&L.
KH