TSLA Wash Sale Code W | FIFO vs Specific ID
PROOF LOG #004
TSLA Wash Sale Code W | FIFO vs Specific ID
When default FIFO creates a Code W path, but documented lot choice keeps the high-basis lot open.
Default FIFO consumed the October lot and put the December sale on a wash-sale path.
The board surfaces the documented alternative and the preserved high-basis optionality.
Same sale. Same shares. Same sale price.
Default FIFO put the sale on a Code W path.
FDL Pro documents a different lot choice before the file hardens, keeps the October high-basis lot open, and makes the differential reviewable.
WATCH THE RECONSTRUCTION
Watch the wash-sale path become visible on the board.
- default FIFO triggered Code W
- the October high-basis lot was consumed under FIFO
- documented lot choice moved the sale to November lot
- Tax Alpha Dashboard showed a ($6,000) Specific ID differential
- Tax Report reflected no Code W and no adjustment
- Audit Trail showed November lot closed while October lot remained open
EXECUTIVE PROOF
Broker FIFO View
- default FIFO can create Code W by default
- the October high-basis lot may be consumed unintentionally
- the sale path stays implicit until after the file is prepared
- the operator is left cleaning up a state they did not explicitly choose
FDL Registry of Truth™
- the documented lot choice is anchored to the November lot
- Tax Alpha Dashboard shows the ($6,000) Specific ID differential
- Tax Report reflects no Code W and no adjustment
- Audit Trail preserves why the October high-basis lot remains open
PHASE 1 — THE DEFAULT PATH
No lot instruction was given.
Default FIFO consumed the October lot and created a Code W path on the December sale.
The January repurchase then sat inside the 61-day window against a loss state that had already been created.
What looks automatic can still be the wrong tax state.
PHASE 2 — THE PREPARED PATH
FDL does not guess the lot.
It executes the documented November lot choice before the result is accepted.
The sale remains at $20,000 proceeds against $20,000 basis, Code W disappears, and the October high-basis lot remains available.
FDL does not manufacture a better story.
It makes the chosen state visible.
FORENSIC EVIDENCE
What must remain intact
- Lot identification continuityThe December sale must remain connected to the lot that was explicitly chosen.
- High-basis lot continuityThe October lot must remain open if it was not selected for disposition.
- Filing continuityThe prepared state must carry cleanly into the final Tax Report.
What FDL makes legible
- Tax Alpha DashboardShows the ($6,000) Specific ID differential.
- Tax ReportShows the prepared result with no Code W and no adjustment.
- Audit TrailRecords the selected lot, the preserved lot, and why the state stands.
This is the point of the white-box architecture:
path, result, and optionality remain separate and reviewable.
WHY THIS CASE MATTERS
A wash sale is not always the core problem.
An implicit lot choice can be.
If the path is left to default FIFO, Code W may appear even when another documented state was available.
This is where reviewable tax infrastructure matters.
WHAT FDL IS SHOWING HERE
FDL Pro makes the wash-sale path visible before the file hardens.
It shows the default state, the documented alternative, and the proof behind the chosen result.
The board shows the differential, the tax file shows the result, and the audit path shows why it stands.
CHOOSE YOUR NEXT STEP
FinDash Lens Pro — deterministic tax infrastructure for prepared, in-scope records.