We finally locked down the cost module last week--our biggest headache so far. As you enter transactions, whether via import or data entry, FinFolio allocates your tax lots using your specified allocation.
It does LIFO, FIFO, Highest, Lowest, Average, and Specific Lot. A neat thing about Specific Lot--you set the top-level allocation type to Specific Lot, then you can set the lot type on individual transactions to LIFO/FIFO/Highest/Lowest. This means you can do fine-grained lot allocation without the headache of having to calculate the lots yourself. (and you can still allocate them manually)
We have test cases for some security types, including short positions and options. Those were very difficult to do in Techfi's software so we made sure they all worked automatically this time around. We're planning on fleshing out any remaining security types before the Developer Preview.
The tax module automatically detects and handles wash sales, qualified dividends, and constructive sales. It tracks not only long term and short term gain, but also gain from collectibles, qualified small business stock, SSBIC, Section 1256 gain, and un-recaptured 1250 gain. It will automatically analyze qualified dividends, correctly treating non-qualified dividends as ordinary income rather than short term capital gain.
