Tax Lot Accounting

Tax lot accounting is supported through the use of Recon codes.  For example, if you buy 100 shares of XYZ at 25, and later buy 100 more shares at 35, then later sell 100 shares, you can now specify which of the 100 lots you have sold.

This would be indicated to the program by giving the sale transaction and the desired purchase transaction identical Recon codes.  Let’s say you indicate the second lot by giving both the sale and the second purchase a Recon code of ‘a’. The program’s Tax report will then show the sale of 100 shares acquired at 35.

If you do not use recon codes, lot matching is not done.  This means that if you had two stock purchases, and you later sold them on separate occasions, the program would treat them as a single transaction, starting at the earliest date.  If one happened to be long term, and the other short term, the program would treat them both as long term, unless you use recon codes to tell it otherwise.