Upbeat music plays throughout
Video Introduction plays
Narrator: Want to change your cost basis method when selling a security?
Screen fades to Schwab home page
Narrator: Cost Basis is defined as what you paid for an investment, including associated commissions and fees. Additionally, it can be adjusted for corporate actions such as mergers, stock splits, and dividend payments. This matters because your capital gain (or loss) will be the difference between the cost basis and the price at which you sell your securities. To begin changing your cost basis method, Click on Accounts and select Positions.
Mouse clicks on Accounts and selects Positions
Narrator: Choose the security you wish to sell and select Sell Shares from the drop-down menu on the right side of the page.
Mouse clicks on drop-down and selects Sell Shares for Home Depot
Narrator: Or alternatively, type a symbol for a stock you own directly into the All-In-One trade ticket. The trade ticket will populate relevant data for your security. You'll see the "Cost Basis Method" field on the trade ticket, below "Action" and "Quantity." Click on that link to display the cost basis selection screen, where you'll see the full list of methods, including First In First Out, Last In First Out, High Cost, Low Cost, Specified Lots, and Tax Lot Optimizer.
Mouse clicks on Cost Basis Method
Narrator: Scan through the options carefully, and choose which one you'd like to use for the trade. Once you've selected a method, click Update to return to the trade ticket.
High Cost is selected. Mouse clicks Update.
Narrator: The cost basis method for this transaction has now been updated, and you can fill out the remaining order details such as action, quantity, and order type.
Order type is changed to Market
Narrator: After completing these details, you can proceed to Review Order.
Mouse clicks on Review Order
Narrator: As a reminder, you may want to consult with a tax professional prior to placing your trade, to ensure which cost basis method makes the most sense for you.
Mouse clicks Place Order
Video Outro plays