Tax lots

Managing tax lots

Selling specific tax lots

1. Enter the symbol you wish to sell in the search bar.
2. Select Sell.
3. Select Sell specific lots.
4. Select the checkbox(es) for the tax lot(s) you want to sell.
5. Enter the number of shares to sell for each selected tax lot.
6. Select Done.
7. Choose your order type.
8. Select Review sell order.
9. Review your order details and select Place order.

Tax-optimized selling

After selecting Sell specific lots, the Tax Optimized button becomes available. Selecting it prompts you to enter the number of shares you wish to sell. Once entered, Frec automatically selects the tax lots and share counts to sell based on the minimum tax strategy.

The minimum tax strategy aims to reduce taxes owed when selling securities by selling shares in tax lots based on the following order:

1. Short-term capital loss, from largest to smallest.
2. Long-term capital loss, from largest to smallest.
3. Short-term zero gain or loss.
4. Long-term zero gain or loss.
5. Long-term capital gain, from smallest to largest.
6. Short-term capital gain, from smallest to largest.

Default tax lot selling method

If a specific tax lot isn't selected when placing a sell order, shares are sold based on the Tax Optimized method above.

Viewing your tax lots

Self-managed stock

1. Select your Self-managed holdings.
2. Select the specific stock you'd like to see the tax lots for.

Direct index

We don't currently display tax lots in-app for direct index positions. You can find these by navigating to your tax center (under your name in the upper right-hand corner) and downloading a CSV of your open and closed lots.