Thanks VolvoGirl, I should have mentioned that. If the reinvestment occurred on January 1, 2012 or later, the shares purchased by the reinvestment will be covered shares and the financial institution will have already factored that into the cost basis reported on the Form 1099-B reporting the sale. If the reinvestment occurred before January 1, 2012 when cost-basis tracking by the financial institution was not required, you'll have to make sure that you track the cost basis yourself on the uncovered shares. (Most of the larger financial institutions track and provide you with your cost basis on uncovered shares anyway even though they do not report it to the IRS on the Form 1099-B.)
