What tax algorithm does fidelity use?

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Mickelous
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Joined: Mon Apr 20, 2020 11:24 pm

What tax algorithm does fidelity use?

Post by Mickelous »

I found this before but I couldn't find it with a Google search. It's not FIFO I'm pretty sure. If I remember I think it was lowest taxes but I'm not 100 percent.
MrJedi
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Re: What tax algorithm does fidelity use?

Post by MrJedi »

They have about a dozen options for your default disposal strategy. Is that what you are talking about? FIFO, highest basis, long term highest basis, etc. You can also always manually select away from the default method.
Topic Author
Mickelous
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Joined: Mon Apr 20, 2020 11:24 pm

Re: What tax algorithm does fidelity use?

Post by Mickelous »

MrJedi wrote: Wed Oct 27, 2021 7:28 am They have about a dozen options for your default disposal strategy. Is that what you are talking about? FIFO, highest basis, long term highest basis, etc. You can also always manually select away from the default method.
Thanks I found it asking fidelity assistant if it uses first in first out. It was that by default and I switched it to tax sensitive. What algorithm do you guys use?
MrJedi
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Re: What tax algorithm does fidelity use?

Post by MrJedi »

I have mine set to high cost long term by default, but I always manually review and select shares myself.
muffins14
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Re: What tax algorithm does fidelity use?

Post by muffins14 »

What do you mean by algorithm exactly?

I think the best path is to do this on your own with specific identification of what lots you want to sell. You want the flexibility to do TLH sometimes and to minimize gains at others
Crom laughs at your Four Winds
Topic Author
Mickelous
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Re: What tax algorithm does fidelity use?

Post by Mickelous »

muffins14 wrote: Wed Oct 27, 2021 8:27 am What do you mean by algorithm exactly?

I think the best path is to do this on your own with specific identification of what lots you want to sell. You want the flexibility to do TLH sometimes and to minimize gains at others
I'm pretty sure TLH as most people do it isn't lawful as it lies within parameters of being too similar to the previous asset. I see people here and everywhere do it anyways but based on my interpretation of the rule I wouldn't risk it.
Yarlonkol12
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Re: What tax algorithm does fidelity use?

Post by Yarlonkol12 »

Fidelity allows you to manually specify which tax lots to sell
My posts are for entertainment purposes only.
jebmke
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Re: What tax algorithm does fidelity use?

Post by jebmke »

I use Spec ID; but I'm at a stage where it is extremely unlikely I will ever sell anything.
Stay hydrated; don't sweat the small stuff
mervinj7
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Re: What tax algorithm does fidelity use?

Post by mervinj7 »

jebmke wrote: Wed Oct 27, 2021 8:44 am I use Spec ID; but I'm at a stage where it is extremely unlikely I will ever sell anything.
TLH opportunities? The only time I ever sell anything.
muffins14
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Re: What tax algorithm does fidelity use?

Post by muffins14 »

Mickelous wrote: Wed Oct 27, 2021 8:42 am
muffins14 wrote: Wed Oct 27, 2021 8:27 am What do you mean by algorithm exactly?

I think the best path is to do this on your own with specific identification of what lots you want to sell. You want the flexibility to do TLH sometimes and to minimize gains at others
I'm pretty sure TLH as most people do it isn't lawful as it lies within parameters of being too similar to the previous asset. I see people here and everywhere do it anyways but based on my interpretation of the rule I wouldn't risk it.
The law says “substantially identical” I believe, not just “similar”
Crom laughs at your Four Winds
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