How do I tell the IRS I used the average cost basis method in reporting the gain or loss from my mutual funds?
Either write the name of the average basis method used as a notation on Form 1040, SCHEDULE D, Capital Gains and Losses, or attach a sheet to the Schedule D showing in detail how you computed the basis of the stock sold. Whenever you attach a statement to your return, include your name(s) and social security number(s).
Related Questions
- I have used the FIFO method to determine the cost basis for a sale of a portion of a mutual fund holding. Must I continue to use this method for all future sales of this fund?
- If I use the average cost method for computing basis of mutual fund shares upon sale, how do I determine the holding period for those shares?
- What cost basis and associated gain/loss information is reported to the IRS?
