First In, First Out

First in, first out is a basis method treating the earliest acquired shares as sold first when specific identification is not used or available.

Why this matters to income investors

The default lot method may realize a different taxable gain than the investor expects.

How to use first in, first out in your research

Use the payer’s final tax document and your purchase records to identify the amount, tax character, and basis effect. Tax treatment can depend on your circumstances, so do not infer it from the cash payment alone.

This material is general education and information, not individualized investment, tax, or legal advice.