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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
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Experience:  10 years experience
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I bought some stocks six years ago at a gher price and sold

Customer Question

I bought some stocks six years ago at a higher price and sold them for less and had a loss as a result. Since I had also bought and sold the same stock in short term ( within a year) and also had some gain, the investment company ( Fidelity Investment) had reported a lower purchase price resulting in a large gain. They claim that I should had advised or selected the option specifying which stock I was selling however such option was not even available. Can I report a different sales than what fidelity has reported to IRS?
Submitted: 1 year ago.
Category: Tax
Expert:  emc011075 replied 1 year ago.

Hi. My name is ***** ***** I will be happy to help you.

Every purchase and sale is treated as separate transaction. If you bought the stock in 2009, than in 2012 you sold it, that was one transaction. When you bought it again in 2012 and sold it in 2014, this was a separate transaction. Your basis for the second transaction are based on purchase date from 2012 and selling data in 2014. If you don't specify which stock you sell, the investment company will sell the stock you bought earliest, first in first out basis. Unfortunately, you cannot report different sales figures. You man have different purchase price but than you will have to be prepared to explain your reasoning if IRS question it.

Customer: replied 1 year ago.
There was no selection as which stock I was selling. I bough originals 600 in 2008 and in 2012 I sold exact same number and meanwhile I was trading same stock in 2012, again each time I bought and sold I was not asked which ones I was selling. Are there advisors in IRS I can contact?
Expert:  emc011075 replied 1 year ago.

Not that I know about. What purchase price is Fidelity reporting?

Expert:  emc011075 replied 1 year ago.

And what did you reported in 2012 when you sold the first original shares?