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mutual funds cost basis Calculating Cost Basis for Mutual Funds (0 viewing) 
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TOPIC: mutual funds cost basis Calculating Cost Basis for Mutual Funds
#22615
Kim Whitehead (Visitor)
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mutual funds cost basis Calculating Cost Basis for Mutual Funds  
Of the four methods allowed for cost basis calculations for mutual funds, which method is most frequently used? Is any one method significantly greater than the other? When filing your tax return, must you use the same method  each year or is it possible to use another method the following year? Does anyone know  the answers to the preceding questions? If so,    your help is greatly appreciated!!!!!!!! A Million Thanks, Kim                                          
 
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Art Kamlet (Visitor)
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mutual funds cost basis Calculating Cost Basis for Mutual Funds  
When filing your tax return, must you use the same method  each year or is it possible to use another method the following year? The method chosen for each fund applies to that fund; another method can be chosen the same year for another fund. Once you choose an averaging method for a fund you stick with it until you no longer own that fund. But you can begin with specific identification (including FIFO) and later switch to averaging.  In the same year, you can make one trade of the fund using Specific Identification, and later make a trade using averaging.
 
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#22617
CalTax (Visitor)
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mutual funds cost basis Calculating Cost Basis for Mutual Funds  

Of the four methods allowed for cost basis calculations for mutual funds, which method is most frequently used? Is any one method significantly greater than the other? When filing your tax return, must you use the same method  each year or is it possible to use another method the following year? Does anyone know  the answers to the preceding questions?
An excellent source for this type of information is: http://www.fairmark.com/mutual/index.htm
 
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#22618
Rich Carreiro (Visitor)
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mutual funds cost basis Calculating Cost Basis for Mutual Funds  
funds, which method is most frequently used? Is any one method significantly greater than the other? When filing your tax return, must you use the same method  each year or is it possible to use another method the following year? Does anyone know  the answers to the You can switch between FIFO and specific ID at will (after all, FIFO is merely a special case of specific ID
 
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#22619
Lewey Thompson (Visitor)
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mutual funds cost basis Calculating Cost Basis for Mutual Funds  
Of the four methods allowed for cost basis calculations for mutual funds, which method is most frequently used? Is any one method significantly greater than the other? When filing your tax return, must you use the same method  each year or is it possible to use another method the following year? Does anyone know  the answers to the preceding questions? If so,    your help is greatly appreciated!!!!!!!! A Million Thanks, Kim                                         The most used, I would say is the average cost, since it is the easiest.  You really don't need much record keeping, just know how much you put in and how many shares you own. Although, you can do yourself a favor and keep your records so that you know how much your capital gains/dividend distributions were reinvested at. If your fund has increased overtime then that certainly would increase your cost basis, most likely not by much but it helps. You don't want to be double taxed on the distributions. You would have to use the same year after year because it would not be fair to used fifo one year and average cost the next. He that is of the opinion money will do everything may well be suspected of doing everything for money.                      
 
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