ACATS Cost Basis Transfer | Original Lot History After ACATS
PROOF LOG #001
ACATS Cost Basis Transfer | Original Lot History After ACATS
When the assets transfer, but the tax history does not.
2023-02-01
$20,000 Basis
The original purchase remains the source truth for the final sale.
Basis: $0
The asset arrives, but the transfer row can read like a new lot.
The assets transferred.
The tax history did not.
This is a record-reconciliation problem.
WATCH THE RECONSTRUCTION
Watch the transfer artifact being neutralized and the sale being re-attached to the original lot.
- Original purchase: 100 TSLA on 2023-02-01 at $200
- Transfer-in artifact shows 2025-01-15 with $0 basis
- If the ACATS error remains, the sale can read as a $25,000 short-term gain
- The operator silences the artifact and matches the sale through Target Lot ID
- Tax Report and Audit Trail reflect the prepared correction
- Final result: $20,000 basis / $5,000 gain / LONG
EXECUTIVE PROOF
1099-B / Transfer View
- transfer-in record may appear as a new lot
- basis may appear as $0
- acquisition date may appear reset
- term may appear short-term
- the reviewer is left reconstructing history manually
FDL Prepared Record
- original lot remains the source truth
- sale is matched to TSLA-20230201-01
- cost basis is carried into Tax Report
- original acquisition date remains reviewable
- Audit Trail preserves the consumed source lot
PHASE 1 — THE ARTIFACT
A transfer-in row can look like a new purchase even when nothing new was acquired.
In this case, the working file showed:
- Date2025-01-15
- Basis$0
- Position100 TSLA
- Effectthe sale can read as a short-term zero-basis disposition
What moved was the asset.
What broke was the record.
PHASE 2 — THE CONTROLLED CORRECTION
FDL Pro does not guess across brokers.
The operator performs a controlled correction:
- SilenceThe zero-basis transfer row is removed from tax-lot computation and retained only as a memo record.
- MatchThe sale is linked to TSLA-20230201-01 through Target Lot ID.
- Run Audit pushes the prepared correction through Tax Report and Audit Trail.
This is not automatic ACATS repair.
It is a controlled, reviewable correction.
FORENSIC EVIDENCE
What must remain intact
- Original acquisition dateThe transfer must not become a new purchase.
- Basis continuityThe original $20,000 basis must remain connected to the sale.
- Lot identityThe final disposition must remain tied to TSLA-20230201-01.
What FDL makes legible
- TransactionsShows the artifact being silenced and the sale being matched.
- Tax ReportShows the corrected result.
- Audit TrailShows the consumed source lot and final close.
This is the point of the white-box architecture:
the correction is visible, not implied.
WHY THIS CASE MATTERS
ACATS is not a taxable event.
It should not create a new tax history.
When basis disappears and the acquisition date resets, the same sale can read radically differently.
Broken transfer view: $25,000 SHORT gain.
Prepared record: $5,000 LONG gain.
This is not tax alpha.
This is truth restoration.
WHAT FDL IS SHOWING HERE
FDL Pro is not creating a new answer.
It is executing a prepared correction to a broken transfer record.
The value is not in guessing.
The value is in making the correction:
- explicit
- deterministic
- reviewable
- traceable to the lot level
CHOOSE YOUR NEXT STEP
FinDash Lens Pro — deterministic tax infrastructure for prepared, in-scope records.