You may change the tax basis methodology at any time by logging into Account Management and accessing the Tax Basis Declaration page in the Report Management menu. When you change the Tax Basis Declaration, the new methodology applies to trades made after the change; it does not affect existing trades.

By default, the tax basis methodology is set to First In, First Out (FIFO). Choose from First In, First Out (FIFO), Last In, First Out (LIFO), or Maximize Losses (ML). The tax basis declaration will appear in the Code column on your Activity Statement for trades where a methodology other than FIFO has been applied.

In compliance with Treasury Department Circular 230, unless stated to the contrary, any information contained in this FAQ was not intended or written to be used and cannot be used for the purpose of avoiding tax penalties that may be imposed on any taxpayer.