NVDA Specific ID Selected-Lot Exit: Direct Indexing Bridge
PROOF LOG #028
NVDA Specific ID Selected-Lot Exit: Direct Indexing Bridge
Direct indexing harvests losses. FDL verifies the selected-lot exit.
A tax-aware sleeve can create activity, but the outside concentrated position still needs a reviewable lot path.
FDL carries the prepared Specific ID instruction through Audit Trail, Tax Report, and Tax Alpha Dashboard.
Direct indexing can harvest losses inside a managed sleeve.
But an outside concentrated NVDA position still needs a reviewable selected-lot exit path.
In this case, the advisor and CPA prepared the NVDA sale against the 2024 October high-basis lot.
FDL verifies the prepared Specific ID path. It does not trade, optimize, replace direct indexing, or replace CPA judgment.
Portfolio action ≠ reviewable tax path.
Proof Summary
Problem: Portfolio activity is not the same as a reviewable tax-lot path.
Prepared input: The NVDA sale was prepared against the 2024 October high-basis lot.
Board result: Tax Report shows the selected-lot result, Audit Trail shows the selected lot consumed and the lower-basis June lot still open, and Tax Alpha Dashboard shows the selected-lot differential.
Boundary: FDL verifies prepared, in-scope records. This is not tax savings, stock-split proof, broker correction, or Direct Indexing replacement.
WATCH THE RECONSTRUCTION
Watch FDL verify the prepared selected-lot exit outside the direct-indexing sleeve.
- Direct indexing harvests losses
- FDL verifies the selected-lot exit
- the lower-basis June NVDA lot remains OPEN
- the 2024 October high-basis lot is consumed
- Tax Report shows $75,150 SHORT gain
- Tax Alpha Dashboard shows Specific ID (§1012) Realized $308,550
- portfolio action is not the same as a reviewable tax path
EXECUTIVE PROOF
Review Gap
- tax-aware activity inside one sleeve does not verify the outside lot path
- an outside concentrated NVDA position still has its own lot path
- default FIFO would report a different result
- the reviewer must prove which lot left and which lot stayed
FDL Registry of Truth™
- prepared Specific ID instruction flows through the run
- Audit Trail shows the lower-basis June lot remains open
- Tax Report shows $75,150 SHORT gain from the selected lot
- Tax Alpha Dashboard shows $308,550 selected-lot differential
CASE MOTION
PREPARED SELECTED-LOT INSTRUCTION
The sale was prepared against the 2024 October high-basis NVDA lot.
The lower-basis June lot was not selected for the sale.
This is prepared Specific ID verification, not retroactive lot picking.
AUDIT TRAIL
Audit Trail shows the lower-basis June lot remains open.
Audit Trail shows the 2024 October selected lot is consumed.
The lot path stays reviewable after the sale.
TAX REPORT
Tax Report shows the selected-lot filing result.
Proceeds: $2,197,350.
Basis: $2,122,200.
Gain: $75,150 SHORT.
The filing-facing result follows the prepared lot path.
DASHBOARD VISIBILITY
Tax Alpha Dashboard shows Specific ID (§1012) Realized $308,550.
This is selected-lot differential visibility.
It is not tax savings, stock-split proof, or broker correction.
WHY THIS CASE MATTERS
Outside position, separate lot path
- Direct indexing sleeveCan create tax-aware portfolio activity.
- Outside NVDA positionStill needs its own reviewable selected-lot exit path.
- Prepared instructionConnects advisor intent, CPA review, and filing-facing output.
What FDL makes legible
- Tax ReportShows the selected-lot result: $75,150 SHORT gain.
- Audit TrailShows what left and what stayed.
- Tax Alpha DashboardShows $308,550 of selected-lot differential.
- BoundaryFDL verifies prepared records; it does not execute trades or replace CPA judgment.
This is the point of the white-box architecture:
portfolio action, prepared instruction, filing result, and reviewable path stay separate.
WHAT FDL IS SHOWING HERE
FDL verifies the prepared Specific ID instruction.
FDL verifies the selected-lot sale path.
FDL verifies the Tax Report result, Audit Trail lineage, and Tax Alpha Dashboard visibility.
Default FIFO reports a sale. Prepared lots explain the outcome.
WHAT FDL IS NOT SHOWING
FDL is not executing trades.
FDL is not replacing direct indexing.
FDL is not claiming tax savings or replacing CPA judgment.
The value is making the prepared selected-lot path reviewable.
CHOOSE YOUR NEXT STEP
FDL — deterministic tax infrastructure for prepared, in-scope records.