SALESFORCE Partial ACATS Transfer: Residual Lot Basis Defense
PROOF LOG #025
Salesforce Partial ACATS Transfer: Residual Lot Basis Defense
A partial ACATS transfer can split one Salesforce lot across custodians — and make the residual cost-basis path hard to reconcile.
The account moved, but the residual lot path still had to remain reviewable.
FDL ties the transfer-out, transfer-in, sale, and residual basis back to one prepared source lot.
One Salesforce lot moved from Morgan Stanley to Fidelity through a partial ACATS transfer.
The account changed. The tax-lot path still had to stay reviewable.
FDL verifies the prepared transfer path across the outbound transfer, inbound receipt, Fidelity sale, Morgan Stanley residual inventory, and Fidelity remaining position.
Account moved ≠ tax lot lost.
Proof Summary
Problem: A partial ACATS transfer split one Salesforce lot across Morgan Stanley and Fidelity, making the residual cost-basis path hard to reconcile.
Prepared input: ACATS transfer-out, transfer-in, residual inventory, and the Fidelity sale were prepared into FDL as a reviewable transfer path.
Board result: Audit Trail preserves the Morgan Stanley residual lot and Fidelity carryover lot; Tax Report shows only the real Fidelity sale; Tax Alpha Dashboard makes the basis path visible.
Boundary: FDL does not discover truth automatically or replace CPA judgment. It verifies prepared, in-scope tax-lot records after the transfer exists.
WATCH THE RECONSTRUCTION
Watch a partial ACATS transfer become a reviewable cross-custodian basis path.
- The shares moved
- The residual lot did not reconcile automatically
- One Salesforce source lot was split across Morgan Stanley and Fidelity
- FDL preserved the Morgan Stanley residual lot: 4,000 sh / $590,200 basis
- FDL preserved the Fidelity remaining lot: 1,500 sh / $221,325 basis
- Tax Report shows only the real Fidelity sale
- 4,500 sh sold with $663,975 basis and $974,745 LONG gain
- $663,975 + $590,200 + $221,325 = $1,475,500 original basis
EXECUTIVE PROOF
Transfer / Review Risk
- one position can be split across custodians
- transfer rows must not become taxable sale rows
- transfer-in must not become a zero-basis standalone lot
- residual inventory must still tie back to the original basis path
- the reviewer must prove sold basis plus both residuals reconcile
FDL Registry of Truth™
- transfer-out and transfer-in stay non-taxable lineage events
- Morgan Stanley residual lot remains open
- Fidelity sale consumes the transferred carryover lot
- Fidelity remaining lot stays open with carryover basis
- Tax Report shows only the real sale
PHASE 1 — THE PARTIAL TRANSFER SPLIT
One Salesforce source lot started at Morgan Stanley.
Original Salesforce lot: 10,000 sh at $147.55.
Original basis: $1,475,500.
6,000 sh moved to Fidelity through a partial ACATS transfer.
The transfer moved shares. It did not eliminate the tax-lot path.
PHASE 2 — THE RESIDUAL LOT DEFENSE
After the transfer, 4,000 sh remained at Morgan Stanley.
FDL preserved the Morgan Stanley residual lot with $590,200 of basis.
Fidelity received 6,000 sh with the same $147.55 carryover unit basis.
The account changed, but the basis path stayed traceable.
PHASE 3 — THE FILING-FACING RESULT
Fidelity later sold 4,500 sh.
Tax Report shows proceeds of $1,638,720 and basis of $663,975.
Realized gain: $974,745 LONG.
1,500 sh remained at Fidelity with $221,325 of basis.
Tax Alpha Dashboard makes the basis path visible: $663,975 realized basis and $221,325 Fidelity remaining basis.
Sold basis plus both residuals tied back to the original lot.
FORENSIC EVIDENCE
Basis tie-out
- Sold basis$663,975.
- Morgan Stanley residual basis$590,200.
- Fidelity remaining basis$221,325.
- Original basis proof lock$663,975 + $590,200 + $221,325 = $1,475,500 original basis.
Quantity tie-out
- Fidelity sold shares4,500 sh.
- Morgan Stanley residual shares4,000 sh.
- Fidelity remaining shares1,500 sh.
- Original quantity proof lock4,500 + 4,000 + 1,500 = 10,000 original shares.
This is the point of the white-box architecture:
sold shares, residual inventory, remaining shares, and basis allocation stay separate and reviewable.
WHY THIS CASE MATTERS
UHNW clients often split concentrated positions across custodians.
After a partial ACATS transfer, the CPA may need to review transfer statements, 1099-B reporting, residual inventory, and receiving-side sales together.
The commercial value is not tax savings.
The value is reviewable control over the tax-lot path after assets move across custodians.
WHAT FDL IS SHOWING HERE
FDL is not moving the assets.
FDL is not choosing lots after the fact.
FDL verifies the prepared transfer path after the transfer exists.
It preserves basis, lineage, residual inventory, and the filing-facing sale result.
The account changed. The tax lot stayed traceable.
CHOOSE YOUR NEXT STEP
FDL — deterministic tax infrastructure for prepared, in-scope records.