Tax Lot Accounting

Tax Lot Accounting

A method of accounting for a portfolio in which one keeps a record of the purchase price and sale price of each security in the portfolio, along with each one's cost basis and transaction size. One maintains the same record for each security even if one performs more than one transaction with it. The goal of tax lot accounting is to minimize one's taxes by reducing the net present value for accounting purposes.
References in periodicals archive ?
A corollary to loss harvesting is tax lot accounting, which keeps track of the dates of purchases, sales and cost basis of various trades made in the same security.
Selecting from more than 7,200 no-load or load-waived mutual funds, Legg Mason identifies appropriate funds to implement your written investment policy Mutual Solutions is a customized, fee-based portfolio of mutual funds with tax lot accounting, time-weighted performance, consolidated monthly statements, and quarterly reports.
long-term capital gains, after-tax returns compared to pretax returns, unrealized gain in a mutual fund, and the use of tax lot accounting to minimize capital gains distributions (see below).