Cost basis

IBKR cost basis, tax lots and diluted cost explained

Cost basis questions are common because trading software, tax lots and strategy analytics answer different questions. They can all be useful, but they are not the same metric.

Three cost views

Tax lots are the official lot-level record used for tax reporting and realized gain/loss matching. Average cost is a quick position display metric. Diluted cost is an analytics metric that can include realized P&L, option premium and strategy income to estimate a practical break-even level.

Why diluted cost matters

For covered calls, cash-secured puts and Wheel strategies, premium income can change how you think about the remaining stock position. Diluted cost helps answer: after realized income from this symbol, where is my effective break-even?

Diluted cost is not tax advice and should not replace IBKR tax lots or official statements for filing.

How IB Dashboard helps

IB Dashboard parses IBKR XML/Flex Query exports to connect trades, positions, premiums, dividends, fees and realized P&L, then shows tax-lot style cost, moving weighted cost, diluted cost, sell analysis and Wheel tracking.

IBKR cost basisIBKR tax lotsdiluted costcovered call cost basisWheel strategy cost
Official references