I am doing my taxes myself this year. Got the Turbo Tax software and so far, so good.

I sold some Mutual Fund shares in 2003.

Under the definition of "cost basis" -- it says, "in most cases, it's simply the total amount you paid for what you sold. For example, if you sold 100 shares of stock, your basis is the total amount you paid for the 100 shares you sold including brokerage commissions."

I thought the "basis" was what I paid for it when I first bought it. In this case, I imagine I take the original price - $10 to keep it simple - and multiply by the number of shares I received?

I have emailed my broker and asked for his assistance, but since I am a former client, he may not be inclined to drop what he's doing to answer my question.

Any advice?

Your "cost basis" is what you have in the purchase ...

Let's say that you bought 100 shares at $10/share ...

Then your cost basis is $1000

But ... if your broker charged a $50 commission or transaction fee on the purchase ... then your cost basis would be $1050 ...

Some mutual funds are "loaded" ... meaning the price that you buy it for is not the same as the price you can sell it for ...

The "load" has a commission built into it ...

Very simply ... your "cost basis" is the TOTAL amount of money that you had to expend to establish the postion ...

:D

It appears that the origanal question to this thread was answered rather well, so if I may, I'll hijack it for another tax question.

I got married last July. Somebody told me that since we were not married for more then 6 month, we had the option of filing single or married. Is this true? I ask, as being married she will lose a huge Earned income credit from being a single mother.

I would say it was answered rather well too. The only C I ever got in college had to do with a course with a calculator. Math and I -- and numbers -- do not get along for some reason. One of the things in life I never could do well. - Jim

Just as I thought -- blown off by my former account manager - "I do not have the info you need in Norfolk. Pls call XXXX XXXX at 800-2XX-XXXX and ask them for account histories on both Destiny accounts. Tnx, Bob."

Jeez ... stiffed.

Anyhow - called them and they are sending the account histories. I assume -- and please some tax whiz help me out here -- I average -- from all the statements -- the cost per share, multiply by shares this transaction - and there's my basis?

Inquiring minds want to know...

It appears that the origanal question to this thread was answered rather well, so if I may, I'll hijack it for another tax question.

I got married last July. Somebody told me that since we were not married for more then 6 month, we had the option of filing single or married. Is this true? I ask, as being married she will lose a huge Earned income credit from being a single mother.

Hmmm ....

I'm not sure about this ... and I'd really hate to tell something that is wrong ...

I believe that you can marry on December 31, and file "jointly" for the whole year ...

And even if you're married ... you can always file "Married filing separately" ... which taxes you at the "single" rate ....

But ... this is something best answered by a certified beancounter ...

Sorry ...

I just don't wanna tell ya wrong and have ya getting in hot water ... or losing money that you wouldn't have to ...

:D

I'm just tryin to get that Earned income credit 1 more year! :lol:

Just as I thought -- blown off by my former account manager - "I do not have the info you need in Norfolk. Pls call XXXX XXXX at 800-2XX-XXXX and ask them for account histories on both Destiny accounts. Tnx, Bob."

Jeez ... stiffed.

Anyhow - called them and they are sending the account histories. I assume -- and please some tax whiz help me out here -- I average -- from all the statements -- the cost per share, multiply by shares this transaction - and there's my basis?

Inquiring minds want to know...

Jim ...

Securities transactions work on FIFO (First In First Out) unless you specifically tell your broker which shares to sell ....

If they were all acquired in the same year ... and it is gonna ALL be a long term capital gain ... or a short term capital gain ... I just add all the costs together and put it down as a lump sum ... rather than trying to figure an average cost basis per share ...

For exacmple ... let's say I'm establishing a 1000 share position in the XYZ company ...

And on MOnday I bought 800 shares at $10 with a $20 commission ...

On Thursday I bought 100 shares at $11 with a $20 commission ...

And a month later I bought another 100 shares at $12 with a $20 commission ...

The only reason the date matters is to establish whether is is a short or long term capital gain or loss ...

So if that isn't a factor ... I'll just use the date of the first transaction and say ...

1000 shares XYZ ... $10,360 ....

As a matter of fact ... I do a lot of trading ... to the tune of about 700 transaction per year ...

I'll use 1 line item for each brokerage account ... and I don't even break it down into transactions ...

As long as the totals match with the copies of the 1009Bs .. 1099DIVs ... and 1099INTs ... that the IRS gets from the brokerages ... they could care less ...

:D

Bill - check your PM's. - Jim

Bill - check your PM's. - Jim

Sorry ... I missed ya ...

PMed you my work number so that you can catch me tomorrow ....

Bill

:D

Got it - I will give you a shout later. -- JIm

Bill - thanks for taking the time to speak with me today my friend. Gotta love this forum - Jim

Any time bud ...

:D