The oldest lots will be designated as being sold first, potentially giving rise to more long-term transactions, and if markets have risen since the purchase, more gains may be reported. Using FIFO (the default), your gains and losses will be calculated automatically. Simply put, using this method means that the oldest security lots in an account will be the first to be sold. Absent a specific instruction from you by the settlement date of the sale to utilize a different tax lot ID method, we are required by the tax law to apply FIFO. It is probably the most common and straightforward tax lot ID method.
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