I bought a closed-end mutual fund in about 1967 thattraded as a stock on the NYSE. I re-invested capital gains.Now capital gains on stocks can be evaluatedFIFO or identified lots method. I took delivery of all thestock certificates. Sometime in the 1970's or 1980's thefund changed to an open-end fund for which the average-costmethod is used for computing capital gains.Last year I sold some of the shares represented by thecertificates by sending them to the fund requesting thatthey be sold. Considering them as a stock, I used theFIFO method of computing capital gains. Since that time, Ihave sold all the shares I bought as stock in closed-endmutual fund. I hope this was legal. Does the IRS considerthose shares as stock (since I bought and sold them thatway), or a mutual fund, since that is what the newcorporation is?I now have only the shares represented bythe reinvested dividends and capital gains. When I sellthese, I assume I will use the average cost method tocompute the capital gains. I guess I compute the averagecost by dividing the number of shares I have by the costbasis as given by, e.g., Quicken, since I have a recordof all my transactions in there. Right?
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