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Subject:  Dividends distributions-Mutual Fund cost basis Date:  2/7/2001  12:40 PM
Author:  Irma Number:  45881 of 127613

We sold a Tax-Free Mutual Fund and need to report this year. The Mutual fund was held for 12 years and dividends were automatically reinvested. I understand that we add these dividends to the cost basis, but there were also capital gain distributions that were also automatically reinvessted. Do we also add these distributions to the cost basis?. Thanks for any help.
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