ADBE Selected-Lot Instruction Review: FIFO vs Prepared Lot Path
PROOF LOG #032
ADBE Selected-Lot Instruction Review: FIFO vs Prepared Lot Path
A selected-lot instruction is not proof. FDL verifies the executed lot path.
The selected-lot instruction can be prepared before sale, but the executed sale still needs a reviewable lot path.
FDL verifies whether the sale stayed tied to the prepared May 2024 selected lot.
A selected-lot instruction is not proof by itself.
In this ADBE case, the advisor / CPA prepared a May 2024 selected lot before sale.
FDL verified that the executed sale stayed tied to the prepared lot path.
Tax Report shows the selected-lot result. Audit Trail shows the selected lot consumed and the legacy low-basis lot stayed open.
Selected-lot instruction ≠ selected-lot proof.
Proof Summary
Problem: A selected-lot instruction alone does not prove that the executed sale followed the prepared lot path.
Prepared input: The advisor / CPA prepared the May 2024 ADBE selected lot before the 2,500-share sale.
Board result: Tax Report used $1,111,900 of selected-lot basis and showed a $357,475 SHORT gain; Audit Trail showed the selected lot consumed and the legacy low-basis lot stayed open.
Boundary: FDL did not choose the lot or optimize the exit. It verified the prepared selected-lot path through reviewable board outputs.
WATCH THE EXECUTED PATH
Watch a prepared ADBE selected-lot instruction become a reviewable executed lot path.
- ADBE selected-lot instruction was prepared before sale
- 2,500 ADBE shares were sold
- Tax Report used $1,111,900 of selected-lot basis
- Tax Report showed $357,475 SHORT gain
- Audit Trail showed the selected lot consumed and the legacy low-basis lot stayed open
- Tax Alpha Dashboard makes the Specific ID differential visible
EXECUTIVE PROOF
Instruction / Execution Risk
- a selected-lot instruction can exist before the sale
- the executed sale still needs a reviewable lot path
- the reviewer must confirm which lot was consumed
- the legacy low-basis lot should remain open if it was not selected
- the filing-facing result must follow the prepared path
FDL Registry of Truth™
- prepared May 2024 selected lot is the review target
- executed 2,500-share sale stays tied to that path
- Tax Report uses the selected-lot basis
- Audit Trail shows the selected lot consumed
- legacy low-basis lot stays open for review
PHASE 1 — THE PREPARED INSTRUCTION
Advisor / CPA prepared the May 2024 ADBE selected lot before sale.
The instruction identified which lot should be reviewed against the executed sale.
The instruction existed. The executed path still needed proof.
PHASE 2 — THE EXECUTED SALE
2,500 ADBE shares were sold.
FDL verified whether the sale stayed tied to the prepared selected-lot path.
Selected-lot instruction ≠ selected-lot proof.
PHASE 3 — THE TAX REPORT RESULT
Tax Report used the selected-lot basis for the executed sale.
Tax Report shows $1,111,900 basis and $357,475 SHORT gain.
The filing-facing result followed the prepared selected-lot path.
PHASE 4 — THE REVIEWABLE PATH
Audit Trail shows the selected lot consumed and the legacy low-basis lot stayed open.
Tax Alpha Dashboard makes the Specific ID differential visible.
The prepared instruction became a reviewable executed lot path.
WHAT STAYED REVIEWABLE
Tax Report
Tax Report used the selected-lot basis for the executed ADBE sale: $1,111,900 basis, $357,475 SHORT gain.
The filing-facing result stayed tied to the prepared selected-lot path.
Audit Trail
Audit Trail shows the selected lot consumed and the legacy low-basis lot stayed open.
The executed sale preserved a reviewable lot path.
Tax Alpha Dashboard
Tax Alpha Dashboard makes the Specific ID differential visible at $423,900.
WHY THIS CASE MATTERS
UHNW clients and advisors often manage concentrated taxable positions with prepared lot instructions.
After execution, the review question is simple: did the sale stay tied to the prepared selected-lot path?
The value is a reviewable path from prepared instruction to executed sale.
WHAT FDL IS SHOWING HERE
FDL did not choose the lot or optimize the exit.
FDL verified the prepared selected-lot path through Tax Report, Audit Trail, and Tax Alpha Dashboard outputs.
Selected-lot instruction ≠ selected-lot proof.
CHOOSE YOUR NEXT STEP
FDL — deterministic tax infrastructure for prepared, in-scope records.