How do you calculate the cost basis for a mutual fund over an extended time period?

Mutual Funds
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Well, it used to be a daunting task for the investors, but the government’s rule has made it easier for everyone. IRS has made it clear that starting in 2011, brokers, which are your financial institutions, must report the adjusted basis and whether any gain or loss on a sale is classified as short-term or long-term from the sale of "covered securities," on Form 1099-B. The "covered securities," are a fancy name for corporate stocks acquired after 2010. Furthermore, the rule mentioned that brokers started to report the shares of mutual funds and stock acquired in connection with a dividend reinvestment plan after 2011, and debt instruments and options after 2013.  Best!

4 weeks ago
August 2006
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