How do I calculate the average basis for the sale of mutual fund shares?
You must have acquired the shares at various times and prices. Have left them on deposit in an account handled by a custodian or agent who maintains an account for the acquisition or redemption of these shares. There are two average basis methods: Single-category method. Double-category method. Single-category method: First, 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 that number by the number of shares sold. Double-category method: First, divide your shares into two categories, long-term and short-term. Shares held for 1 year or less are short-term. Shares held for more than 1 year are long-term. Then use the steps described under the single-category method to get an average basis for each category. The average basis for that category is then the basis of each share sold from that category. Once you elect to use an average basis method: You must continue to use i
In order to figure your gain or loss using an average basis, you must have acquired the shares at various times and prices and have left them on deposit in a managed account. There are two average basis methods: Single-category method, and Double-category method. Single-category method First, 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 that number by the number of shares sold. You may have both short and long term gains or losses. Use the FIFO method to determine your holding period. Double-category method. First, divide your shares into two categories, long-term and short-term. Then use the steps above to get an average basis for each category. The average basis for that category is then the basis of each share in the sale from that category. Once you elect to use an average basis method, you must continue to use it for all accounts in the same fund. You must cle
In order to figure your gain or loss using an average basis: • You must have acquired the shares at various times and prices. • Have left them on deposit in an account handled by a custodian or agent who maintains an account for the acquisition or redemption of these shares. There are two average basis methods: • Single-category method. • Double-category method. Single-category method: • First, 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 that number by the number of shares sold. Double-category method: • First, divide your shares into two categories, long-term and short-term. • Shares held for 1 year or less are short-term. • Shares held for more than 1 year are long-term. • Then use the steps described under the single-category method to get an average basis for each category. • The average basis for that category is then the basis of each share sold from tha
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- How do I calculate the average basis for the sale of mutual fund shares?
