No. Do not reduce your cost basis by any foreign tax paid.
You are correct in computing your basis in a mutual fund where everything was invested. Your cost basis includes cash contributions plus reinvested dividends and capital gains. You will also have to subtract any return of capital.
See Cost Basis: Tracking Your Tax Basis
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
