If you’re using Specified as your tax lot method in Morningstar, you will need to specify the lot within the closing transaction that should be depleted.
How to specify a lot to be depleted
Open the account from the Portfolio Management tab. Click on Transactions on the left-hand panel and locate the closing transaction (usually a Sell).
Right-click on the transaction and choose Edit.
If the Matching Method Specified section does not already say Specified, choose Specified from the drop down menu.
Once you change this option to Specified, a new window will open. Within this window, all the open lots for this security will be listed. If the Matching Method Specified field already displays Specified, click on View Tax Lots. Then click on Specify Lots on the window that opens.
Zero out the ‘Selected Shares’ column for any lots that should not have shares depleted for this transaction. Type the number of shares in the ‘Selected Shares’ column for the appropriate lots. Click OK.
Click Save and Close on the transaction screen.