When a taxpayer has purchased several lots of stock on different dates at different purchase prices and cannot identify the lot of stock that is being sold,he may choose which lot of stock is deemed to be sold.

Question

Quizplus · Accepted Answer

When a taxpayer cannot identify which lot of stock is being sold, the IRS requires the use of the First-In, First-Out (FIFO) method, where the oldest stock is considered sold first.

When a Taxpayer Has Purchased Several Lots of Stock on Different