Mutual Fund Sales

I am trying to figure out the cost basis of mutual fund shares. If I received capital gain distributions since I bought it do I add those distributions to my cost basis? I took the distributions in cash and paid capital gains taxes in the year received. So my share count stayed the same.

Example...I bought 100 shares at $100. Over the period I owned them I received $10 of capital gains. These were distributed at YE and I paid cap gains taxes on them. Do I adjust cost basis to $110 or does it stay at $100.

Thanks

152

Level 15

Apr 1, 2023 8:54:00 AM

If you take a capital gains distribution in cash, no basis adjustment is necessary. You simply pay tax on the amount received, and the basis in your remaining fund shares stays the same.

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Mutual Fund Sales