I recently sold some stock and I never informed my broker dealer the method that I would like the cost basis to be reported with the realized sale. I would like to know if I can report a different cost basis method for the tax lots on form Schedule D and 8949 than what is reported on the 1099 form I received from my broker?

ANSWER

The BIDaWIZ Team's Answer:

The IRS regulations require that brokers report the sales of securities using a default method such as first-in first-out (FIFO) within an account unless the customer notifies the broker dealer in advance of the sale. The customer must make an adequate and timely identification of the securities to be sold. If the customer isn't able to make an election on time and cannot contact the broker in advance to make a change before the 1099 is issued, then the customer must report the sale using the default method. This is referenced in the Internal Revenue Bulletin 2010-47 and IRC Section 1012.