Kenohe answered this where I mistaknely posted my question for which I apologize. At the time, I couldn’t figure out how to post this question in the “Tazation of Investments” Location. He suggested that, for the future, I post in more appropriate locations since it will be seen by more people.
I received 51 shares of AdvnaSix stock as a result of a Honeywell Spi-off. I recently sold those shares but they consist of fur separate lots with a different cost basis for each lot. When I receive the check in payment for those shares, it will be for all of the 51 shares. How do I report the cost basis for those four different lots?
When you decide to sell a portion of your holdings in a stock, you have to decide which shares you actually want to sell. Two of the most common methods used in this decision are known as FIFO and LIFO, and the choice you make can have a big impact on your taxes.