How does one calculate the cost basis of various mutual fund shares in taxable accounts when you liquidate them during retirement?
We have been doing weekly investments into various mutual funds for years now.
On top of that, the dividends are re-invested. I believe some of these mutual funds have something like a monthly dividend pay out.
There must be thousands and thousands of transactions during all these years.
On top of that, from time to time, we paid taxes on some kind of realized cap gains on these mutual funds (which show up on the yearly 1099).
So, how does one calculate the cost basis of these mutual funds when you sell?
My poor head is going to explode thinking about this.
My understanding is that IRA/401K is easy. This is pre-tax and thus everything you liquidate is counted as normal income.
Roth is easy too - nothing is taxed.
Thanks.
We have been doing weekly investments into various mutual funds for years now.
On top of that, the dividends are re-invested. I believe some of these mutual funds have something like a monthly dividend pay out.
There must be thousands and thousands of transactions during all these years.
On top of that, from time to time, we paid taxes on some kind of realized cap gains on these mutual funds (which show up on the yearly 1099).
So, how does one calculate the cost basis of these mutual funds when you sell?
My poor head is going to explode thinking about this.
My understanding is that IRA/401K is easy. This is pre-tax and thus everything you liquidate is counted as normal income.
Roth is easy too - nothing is taxed.
Thanks.
Statistics: Posted by tippedears — Thu Jun 06, 2024 2:48 am