Overview
Availability of Calculator
Field Definitions
- Enter Calculation Criteria
- Specify Shares or Contracts for Depletion
- Calculate the Results
Create a hypothetical order for a closing transaction, and then evaluate various gain/loss scenarios for the order. The position must be open and its gain/loss known and in good order (IGO). You may also compare the impact of different cost basis disposal methods on the order so you can help to optimize the tax consequences for your client.
Results for the estimated gain/loss request are based on the most recent market price or a limit price that you specify. After analyzing the results, if entitled, you can initiate an order directly from the calculator, which prefills the appropriate order ticket.
The calculator is available for positions held in these U.S. dollar (USD) settled securities:
The calculator is not available for positions held in these securities:
Further limitations include:
Calculate estimated gain/loss using the account-level disposal method and, for a position with ID Cost method, up to two alternative transaction-level disposal methods. One alternative is the specify shares (or specify contracts) method, which allows you to precisely identify the open tax lots to deplete for a closing transaction.
To enter calculation criteria
On the Positions window for an eligible position, in the Security ID column, select the link.
- Select Estimated Gain/Loss Calculator.
- Details for the position display at top of window.
- The Action field prefills based on the security type. (Field Definitions)
If the security is a mutual fund, select the Quantity Type:
Dollar (Default)
Shares
To calculate estimated gain/loss at the current market price, select Last Price.
or
To calculate estimated gain/loss at a specified limit price, select Limit Price and enter the limit price.
- Select the Refresh icon to update the Last Price.
If entitled, choose the Commission.
- This field may be pre-filled and you cannot change it.
To override the standard commission, if entitled:
- Select Amount.
- Enter dollar amount of the service fee or override commission.
From Compare Disposal Methods, select up to two alternative transaction-level disposal methods to compare against the Account Disposal Method. (Cost Basis Disposal Methods)
To instead control which tax lots to deplete, select Specify Shares or Specify Contracts.
Each acquisition of a security on a different date or for a different price constitutes a separate tax lot. Use the specify shares/contracts feature to identify precisely which open tax lots to deplete for a closing transaction.
Prior to identifying which tax lots to deplete, you can choose how to sort open lots for the order. Based on your sort criteria, the system prefills the Shares Specified column so you do not have to manually enter the information. You may override the prefilled entries and make your own selections. Any shares left unspecified are depleted using the disposal method on record for the account.
Note
The ability to specify shares is not available for fixed income positions.
To specify shares or contracts
Select Continue & Specify Shares or Continue & Specify Contracts.
- Open tax lots display for the position. (Field Definitions)
To sort lots based on holding period (primary sort method), select an option:
No Preference (Default)
Sort tax lots using First In, First Out (FIFO) order.
Short-Term
Sort tax lots with short-term holding periods (one year or less) first.
Long-Term
Sort tax lots with long-term holding periods (greater than one year) first.
To sort lots based on cost (secondary sort method), select an option:
No Preference (Default)
No secondary sort method applied, only primary sort is used. If No Preference is also selected as primary sort, tax lots sort in FIFO order.
Highest Cost
Fill tax lots with the highest cost per share first.
Lowest Cost
Fill tax lots with the lowest cost per share first.
Minimizing Gain/Loss
Attempt to identify high cost and low cost per share. There is no guarantee that gains or losses will be offset, in whole or in part. Results can vary.
To override prefills, in the Shares Specified column, enter the number of shares or contracts to deplete from each lot.
Running totals below the table update dynamically as you enter values. Shares Specified plus Shares Remaining must equal Total Shares in Order. Shares left unspecified are depleted using the account-level disposal method.
Go to: Calculate the Results
A banner summarizes the criteria specified for the calculation. Estimated gain/loss results are presented in a table for easy comparison, with short-term, long-term, and total gain/loss results displayed for each disposal scenario. Results are also itemized for covered and non-covered shares in accordance with IRS cost basis reporting rules.
If entitled, after viewing results, you can initiate your order directly from the calculator. The applicable order entry ticket opens and is prefilled with entries for the selected scenario, including share specified, if chosen.
Note
The ability to initiate orders from the calculator is not available for fixed income positions.
To calculate results
Select Calculate.
- Estimated gain/loss displays for the disposal methods selected.
- To modify specified lots, select Edit.
Now, do one of the following:
- Position Information
- Calculation Criteria
- Specify Shares/Contracts
| Field | Definition |
|---|---|
| Account # | The account number followed by the Custom Short Name/FBSI Short Name in parentheses, if available. |
| Symbol/CUSIP | The symbol or CUSIP of the security, followed by the security description in parentheses. |
| Last Qty | The recent position quantity of the security. |
| Last Mkt Val | The recent market value of the position as calculated using the recent price and the position quantity, in USD. |
| Acct Type | The account type:
Cash Margin Short Note The calculator is not available for positions held in other account types. |
| Field | Definition |
|---|---|
| Action |
The order action, which is based on the account type and the position: Sell
Note
|
| Alternative 1 & Alternative 2 | The alternative transaction-level disposal methods to apply to the hypothetical order. You can specify up to two transaction-level disposal methods to compare against the account-level disposal method when evaluating estimated gain/loss scenarios. This field is optional. (Cost Basis Disposal Methods) |
| Amount | If you selected Amount as the Commission, this is the amount of the service fee or override of the standard commission, in USD. |
| Commission | If entitled; the type of commission to apply to the order:
Rep Schedule If entitled: Amount Investor Schedule |
| Other Sales Fees | If entitled; the dollar amount of an additional sales fee associated with a back-end load mutual fund, in USD. This amount is optional and is added to the commission to calculate estimated gain/loss. |
| Price | Last Price
The updated price quote for the security, reflecting intraday activity as of the last refresh. Select Last Price to calculate estimated gain/loss for a market order executed at this price. Select the Refresh icon for an updated quote. Limit Price The execution price for the closing transaction when executed as a non-market order. Select Limit Price to calculate estimated gain/loss for a limit order executed at this price. |
| Quantity | The amount of shares, contracts, or dollars to be executed, or the face value amount of the fixed income security to be sold. |
| Quantity Type | For a mutual fund order, the type of quantity entered:
Shares Dollars |
| Field | Definition |
|---|---|
|
Cost Basis/Share or Cost Basis/Contract |
The price at which the available number of shares or contracts in the lot were purchased, on a per share or per contract basis.
Note Fixed income basis uses an industry standard adjusted value and not the original. |
| Cost Source | The origin of the cost basis information for a position:
Customer Fidelity NFS Third Party |
| Date Acquired | The date the shares or contract were added to the account, in DD-Mmm-YYYY format.
If the shares or contracts were originally acquired shares through this account and the lot is known, the Date Acquired is the Trade Date. or If the shares or contracts were acquired in an online trading account at another brokerage firm and then transferred to this Fidelity account, the date acquired is the date Fidelity received the shares or contracts. |
| Holding Period | How long the shares were held since their acquisition date:
Short Shares were held one year or less. Long Shares were held longer than one year. Fractured Shares were held for a combination of holding periods. For positions tracked at lot level, fractured lots are typically the result of wash sales. Unknown Fidelity has no record of the holding period. |
| Lot Basis | The current value of all shares or contracts associated with the lot, displayed in U.S. Dollars (USD):
Shares Available x Cost Basis/Share (or Cost Basis/Contract) |
|
Shares Available or Contracts Available |
The available number of shares or contracts in the open tax lot. |
|
Shares Remaining or Contracts Remaining |
The remaining number of shares or contracts in the order for which you have not yet identified specific shares or contracts to trade. Unspecified shares or contracts are sold using the account-level cost basis disposal method. |
|
Shares Specified or Contracts Specified |
The total number of shares or contracts you chose to trade when the order executes. You cannot specify a number of shares or contracts greater than the order amount. |
| Unrealized Gain/Loss | The hypothetical value of the gain or loss that would be realized if shares were sold at the indicated price. For example, it is an unrealized gain or unrealized loss if the lot is still open and has not been sold. A gain or loss is realized upon sale. It is an unrealized gain when the closing market value is higher than the lot basis. It is an unrealized loss when the lot basis is higher than the closing market value. |
This table details closing transactions by supported security types based on the length of time they were held.
| Security Type | Long
Cash (1) or Margin (2) |
Short
Cash (1) or Margin (2) |
Long
Short (3) |
Action |
|---|---|---|---|---|
| Mutual Fund | x | Sell/Sell Fund | ||
| Equity | x | Sell | ||
| Equity | x | Buy/Buy to Cover | ||
| Call Option | x | Sell Calls to Close | ||
| Call Option | x | Buy Calls to Close | ||
| Put Option | x | Sell Puts to Close | ||
| Put Option | x | Buy Puts to Close | ||
| Fixed Income | x | Sell |
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