I received my Cost Basis Statement. How does Franklin Templeton calculate the cost basis information?
Franklin Templeton uses the average basis-single category method to calculate cost basis information for shareholders. Even though this method is commonly used to calculate gains or losses on the sale or redemption of fund shares, it is only one of four methods authorized by the IRS. To calculate your cost basis under this method, divide the total cost basis of all shares (including reinvested dividends) in the account at the time of redemption by the total number of shares in the account at that time. The cost basis of shares redeemed is determined by multiplying the cost basis per share by the number of shares redeemed.
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