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Cost basis is the historical acquisition price assigned to your investment for tax purposes. For mutual funds, you can determine your cost basis using the FIFO method or average cost...
What is Cost Basis? In simplest terms, cost basis (or “tax cost” or “tax basis”) refers to the price you paid for an asset adjusted upward for reinvested dividends and capital gains and downward for return of capital and capital losses.
To calculate average basis: Add up the cost of all the shares you own in the mutual fund. Divide that result by the total number of shares you own. This gives you your average per share. Multiply the average per share by the number of shares sold.
There are two key ways for selecting cost basis—first-in, first-out (FIFO), and specific share identification. Imagine that the value of the mutual funds in your non-retirement...
Cost basis is the original value of an asset for tax purposes—usually the purchase price, adjusted for stock splits, dividends, and return of capital distributions. This value is used to...
When you invest in a stock, a mutual fund or real estate, your cost basis is the price (or cost) of the asset on the day you bought it. Keeping track of your cost basis...
If you sell an investment such as a stock or mutual fund, the IRS requires that you report any capital gains or losses along with cost basis information. What Is Cost Basis? Should I sell at a loss to offset capital gains?
Cost basis is simply the original value, or purchase price, of an asset for tax purposes. It is adjusted along the way for reinvested dividends and capital gains, and return of capital distributions that are all taxed in the year they occur.
Whenever you buy a stock or mutual fund you establish a cost basis in that investment, which is the original purchase price of that asset. Over time, though, that cost basis can change based on...
The average cost basis method is generally available for all mutual funds (including open- or closed-end funds), exchange-traded funds (ETFs), and exchange-traded notes (ETNs). Average cost is calculated by taking the total cost of the shares you own and dividing by the total number of shares.