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In recent years by law the brokerage company tracks the lots you buy and when you sell you can select which to sell. The gains are reported accordingly on the f
by mgerdts 4y ago
In recent years by law the brokerage company tracks the lots you buy and when you sell you can select which to sell. The gains are reported accordingly on the forms the brokerage company sends at the end of the year.
Things get more complicated when you are trading the same security across different brokers because they can’t detect wash sales. The IRS has the information to detect was sales.