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 should use either a weighted average approach or a LIFO approach.

Question

Quizplus · Accepted Answer

In the U.S., if a taxpayer cannot identify which lot of stock is being sold, they must use the FIFO (First-In, First-Out) method, not a weighted average or LIFO (Last-In, First-Out) approach, unless specific identification is possible or another method is elected.

When a Taxpayer Has Purchased Several Lots of Stock on Different