In article
<faccf0b1-c5c3-4e8d-8788-0ac00410e6aa[at]j35g2000yqh.googlegroups.com> ,
j.x.a.peterson[at]gmail.com wrote:

- quote -

You don't specify it explicitly.

For stocks, you don't have a choice in how to calculate cost basis, it's
always the cost of the shares you sold. With mutual funds you have the
option of average cost basis.

- quote -

If you don't specify to the broker the shares you're selling, the
default is that you're selling FIFO. Identifying the shares is
different from choosing the cost basis method.

Once you've started using average cost basis method for a particular
mutual fund, you have to keep using it for that fund (until you
completely dispose of your holdings, I expect).

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA
*** PLEASE don't copy me on replies, I'll read them in the group ***

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