Equity Disposal Method

[KathleenJ-AMIC]

Good afternoon,

Is there any STAT guidance as far as disposal method consistency? When our investment department disposes equity trades they list them on the trade memo as "high cost" and we dispose of them using that disposal methodology in our investment accounting software.

They are looking to start selecting specific lots and we would like to know if we will be in compliance if some lots are specified for disposals and others are just selected by our system.

Thank you,
Kathleen

[Jeff]

There is nothing in the stat literature on this topic. I would check with your tax professionals as I do think you have a tax issue if you change the way your gains/losses are determined.