I have a taxable mutual fund with an asset value of $17,000 that I wish to sell. The covered cost basis is $17,500 and the non-covered cost basis is $4,400.
I think I understand why there is a covered and non-covered for this fund. That is, securities are typically non-covered if acquired prior to January 1, 2011.
If I sell this fund in entirety at $17,000 would my capital gain be $21,900 (17,500 plus 4,400) minus $17,000 or am I interpreting it the wrong way and I have to employ another approach?
