PROOF LOG #020 META RSU Sell-to-Cover Basis Defense Sell-to-cover was not the end of the lot. Broker Risk Net-Share Basis Can Vanish Broker records can make the later net-share sale look like a new basis problem. FDL View Surviving §83 Basis The remaining META shares still carry W-2 basis from
FIELD GUIDE #019 What the FDL Tax Alpha Dashboard Shows How to read visible tax value, filing result, and audit trace across FDL. Without the Tax Alpha Dashboard Tax Work Stays Invisible A correction can be technically right and still difficult to explain, review, or defend. FDL View Tax Work
PROOF LOG #018 AAPL Concentrated Stock Exit | FIFO vs Prepared Lots Prepared exit. Reviewable path. FIFO Default Hits the Old Lot A concentrated AAPL exit can consume the 2016 low-basis lot if FIFO controls the sale. FDL View Prepared Exit Lots FDL carries the CPA-prepared Target Lot IDs through the
PROOF LOG #017 Specific Identification Before Trade | MSFT FIFO vs Selected Lot Prepared before trade. Reviewable after audit. Broker FIFO Sells the Old Lot Default FIFO would hit the 2016 low-basis MSFT lot. FDL View Selected Lot Preserved FDL carries the CPA-prepared 2024 Target Lot ID through the run. FIFO
PROOF LOG #016 SPY Covered vs Noncovered Basis | One Sale, Two Tax Worlds One SPY sale. Two reporting worlds. Broker View One SPY Sale A single sell order can mask different basis burdens inside the same ticker. FDL View Covered + Noncovered Basis FDL separates the legacy burden from the modern
PROOF LOG #015 QYLD Return of Capital Before Sale | High Yield May Be Basis Return What looked like yield may be basis coming back. Client View High Yield Monthly ETF cash flow can look like income. FDL View Basis Return FDL shows final 1099-DIV ROC reducing the original lot basis.
PROOF LOG #014 NVDA Same-Day RSU Sale | Basis Already Taxed at Vest Same-day sale. Still a gain. Broker View Same-Day 7-Figure Gain Missing basis can make a same-day RSU sale read like a massive capital gain. FDL View $1.96M Taxed Basis FDL carries the already-taxed basis into the sale.
PROOF LOG #013 ACATS Partial Transfer Cost Basis | Sale Linked Back to Source Lot When part of a position moves, the holding can split. The tax history must not. Broker View New Lot A partial transfer can make the Schwab-side piece look like a fresh lot. FDL View Source Lot
PROOF LOG #012 Wash Sale Across Household Accounts | TSLA Across 3 Brokers When one household trades through three brokers, no single broker sees the full wash sale path. Broker Scope One Account A single broker view can miss the denied-loss path once the replacement lots land elsewhere. FDL Household View
PROOF LOG #011 Solventum Spin-Off Basis and Holding Period | 3M to SOLV A 3M / Solventum spin-off can create a new ticker without creating a new tax lot. Continuity Rule New Ticker ≠ New Tax Lot A spin-off can create a new security symbol without resetting the tax origin. FDL Registry of
PROOF LOG #010 GE Spin-Off Cost Basis and Holding Period | GE, GEHC, GEV A reverse split and dual spin-off did not erase history. The 1099-B did. GE was not a ticker change. It was a structural event chain. FDL does not guess the aftermath. It restores the original record. EXECUTIVE
PROOF LOG #009 Realty Income Return of Capital Basis Reduction | 10-Year O When broker average cost says $52.24 but the 10-year corrected basis is $45.55. Broker Summary $52.24 The average cost summary does not show 10 years of ROC erosion. Tax Alpha Dashboard $6,690.70 ROC
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Audit Log #008 The 717-Day Time Heist: DFS/COF Fractional Recovery BROKER RESET 2025-05-19 SHORT-TERM (37%) FDL RESTORED 2023-06-02 LONG-TERM (20%) A merger is not a reset; it is a transformation. Yet, brokers routinely erase your 717-day ancestry, converting a tax-free reorganization into a short-term liability. WATCH: RECLAIMING THE DNA
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PROOF LOG #007 RSU 1099-B Basis $0 | W-2 Basis Already Taxed When 1099-B says zero and payroll says $7,205 was already taxed. 1099-B Record Basis: $0.00 The broker record does not show the W-2 basis. Payroll / W-2 Record $7,205 Taxed The RSU income was already included in
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PROOF LOG #006 Kenvue Holding Period After JNJ Split-Off | Did It Reset? When a new ticker appears, the inherited JNJ holding period must stay intact. Broker View Reset KVUE can look like a fresh post-exchange lot if the continuity is not reconstructed. FDL View Inherited Term FDL Pro makes the
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Audit Log #005 The NVDA Hallucination: Recovering the Missing 0.877 "YOUR CLIENT SEES +763%. YOU SEE A POTENTIAL 1099-B HALLUCINATION." *Exhibit A: The $NVDA 10:1 Split and the systemic disappearance of fractional cost basis. The 0.877 Fragment Heist When NVIDIA executed its 10:1 split,
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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. Broker FIFO / Tax Report Code W Default FIFO consumed the October lot and put the December sale on a wash-sale path.
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Audit Log #003 The Sovereign Choice (Specific ID): Beyond Integrity FROM SHIELD TO SWORD. The Broker-Default Garbage In Audit Logs #001 and #002, we established a fortress of Integrity. But the elite practitioner demands more: the ability to transform accuracy into client alpha. Brokerage reporting is often "Bulk Garbage.
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Audit Log #002 The 19-Month DNA Reclamation AI GUESSES, FDL RECONSTRUCTS. The Memory Wipe When VMware was absorbed by Broadcom, millions of holding periods were erased. While the world focused on the $61B price tag, Sophisticated Tax Professionals faced a silent catastrophe: Mixed Consideration. Brokers reset the acquisition clock to
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PROOF LOG #001 ACATS Cost Basis Transfer | Original Lot History After ACATS When the assets transfer, but the tax history does not. Original Lot Record 100 TSLA 2023-02-01 $20,000 Basis The original purchase remains the source truth for the final sale. Transfer-In Record 2025-01-15 Basis: $0 The asset arrives,