Which numbers on this statement do I use to calculate cost basis?

Question

Hi everyone,

I am trying to calculate cost basis on a mutual fund purchased in 1990, and sold in full on December 2013.  All capital gains and dividends were reinvested from the very beginning, and nothing was ever sold until December.

I am trying to calculate my cost basis and have all my statements.  I have a couple questions:

1) Most people say to do it by calculating the number of shares purchased by the price per share at the time; then you are supposed to add these up and add it to your original purchase price. That would mean I would have to do it for every separate transaction over 24 years.

However, my tax statements also list the dividends and capital gains each year (which are the numbers I will already have paid taxes on).  Can I just use those numbers instead?

2) If so, my statements have three numbers for dividends: "Income dividends paid this year," "Ordinary dividends," and "gross dividends and other distributions of stock."  Which of these numbers would I use?

Thanks!

ninasgramma · Accepted Answer

From your information, you have received only dividends (ordinary dividends and capital gains distributions), and not a distribution of stock.

Use the numbers on your tax documents (1099DIV) and add together the dividends and the capital gains distributions.  This total is added to the original cost of your investment to figure the basis.

Slickterp · Answer

Reinvested gains are still taxable...you don't have a gain without a sale.

The dividends have nothing to do with calculating the capitol gains, ignore them.

This doesn't make sense.  You wouldn't have paid taxes on a gain if you didn't sell anything.  So your cost basis is what you bought it for in 1990.

Bash Limpbutt&#39;s Oozing Cyst© · Answer

Take your original investment and add to it all reinvested dividends, interest, capital gains, etc. over the years.  That's your basis for the entire fund.  If you are dumping the entire fund at once, that's all that you need.

Judy · Answer

Use purchase price plus any reinvested capital gains and dividends while you've owned it.

tro · Answer

what did you pay for it originally? you have paid on the dividends each year etc so the original price would be appropriate

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Which numbers on this statement do I use to calculate cost basis?

5 Answers