Course 507: Calculating Your Cost Basis
Double-Category Averaging
In this course
1 Introduction
2 First In, First Out (FIFO)
3 Specific Share Identification
4 Single-Category Averaging
5 Double-Category Averaging
6 What's the Difference?

Finally, there's double-category averaging. Mutual fund shares are divided into short-term and long-term gains and are then averaged for cost basis. Of course, different tax rates apply to each category, and you must tell your mutual fund in writing how many shares from each category you want to sell. Definitely not a process for the faint of heart.

Next: What's the Difference? >>


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