I have a mutual fund with T. Rowe Price that I started in 1997.Since then I have re-invested all dividends and capital gains. So I assume I have both non- covered and covered shares.
I'm thinking of selling a portion of it and will need to figure the cost basis and taxable amount.
TRP states that when I withdraw money from an account with both covered and non-covered shares, they first use non-covered shares. Furthermore, they said they do not track or provide a cost basis for non-covered shares however on my account page they provide the following:
Shares Cost Basis Cost per Share
Covered Average Cost $23.16
Noncovered 4,972.270 Average Cost $15.70
Current Share Price: $24.32
So, if I wanted to raise $50,000 gross, I would need to sell about 2,056 shares at the current price of $24.32.
If I understand correctly, then the taxable amount would be $50,000 - ($15.70)*2056) = $17,720.80.
Is that correct?
