The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/tagiles-wonders-quot-when-determing-the-cost-10477634.aspx

Subject:  Re: Mutual Fund Cost Basis Date:  12/22/1998  3:00 PM
Author:  RheS Number:  7475 of 121598

TAGiles wonders "When determing the cost basis for a mutual fund sold this year, can I add the yearly management fees and other operating expenses such as 12b-1 fees? Since it had a front-end load, that cost was already figured in when the fund was purchased, but the other fees are not added in as best as I can determine."

Don't worry, you've accounted for the 12b-1 and other fees... they reduced your gain (or added to your loss, if your fund managers are extra-incompetent).

You can't add this stuff to the cost basis, because it's subtracted from your gain. Your cost basis only includes what you actually paid, so it includes any commissions, and front-end loads (which are, effectively, commissions).

Does that make sense?

Dick Smith
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us