I use the first-in, first-out (FIFO) method to report my capital gains. Can I use Franklin Templetons Cost Basis Statement to prepare my taxes?
The CBS does not report basis information under the FIFO method and it may not be appropriate to use if you report using this method. Please note that once you start using an average cost basis method to report gains/losses for a fund, you may not switch to another method for that fund without IRS approval. You may use different methods of reporting for different funds (for example, FIFO for Templeton World Fund and Average Basis-Single Category for Templeton Foreign Fund). Please consult your tax or financial advisor for more information about cost basis, and whether the information provided on the CBS form is appropriate for your personal tax situation. Additional information about determining the basis you have in your mutual fund shares can be obtained by reading IRS Publication 551, Basis of Assets, and 564, Mutual Fund Distributions. These publications can be downloaded from the IRS website.
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?
- What cost basis information from the Baird 1099 "Realized Capital Gains / Losses" will be excluded from the TurboTax® download?
- How do I tell the IRS I used the average cost basis method in reporting the gain or loss from my mutual funds?
