The default tax basis methodology for all accounts is First In, First Out (FIFO), but it can be changed on a per day and per symbol basis. To change the default matching method for your account, login to the Client Portal version of the Tax Optimizer. Your change will be effective immediately, and will apply until you choose to change it again.
If you elect to change the "Method for All" in the TWS version or "Today's Match Method" in the Client Portal version, the change applies only for the specified trading day and your account will go back to using the default match method the next trading day.
Additionally, you can choose to apply the "Method for All" or "Today's Match Method" to a specific symbol. This change applies only for the specified trading day and your account will go back to using the default match method the next trading day.
You can choose from these tax basis methodologies:
- First In, First Out (FIFO)
- Last In, First Out (LIFO)
- Maximize Long-Term Gain
- Maximize Long-Term Loss
- Maximize Short-Term Gain
- Maximize Short-Term Loss
- Highest Cost
- Specific Lot
IBKR also offers tax-advantaged account types for clients who are U.S. citizen, such as IRA accounts. Please click here to learn more about these account offerings.
Note
- IB-CAN clients are not able to access the Tax Optimizer because Average Cost is the only allowed tax lot matching method by CRA.
Additional Information