A taxpayer who owns indistinguishable shares of stock purchased in two or more transactions and who later sells some of the stock must identify the shares sold using the last-in, first-out (LIFO) method.

Question

Quizplus · Accepted Answer

A taxpayer can use the specific identification method to identify the shares sold instead of LIFO if they can adequately identify the specific shares being sold.

A Taxpayer Who Owns Indistinguishable Shares of Stock Purchased in Two