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Is the way you calculate your basis for IRA's correct? I put in $8000 over 4 years ($2000/yr) in a contributory IRA and claimed them as non-deductible (filled out form 8606 for each year). I converted it to a ROTH in 1998, (total amount at the time of conversion was $24,000) and at 12/31/98 it's value grew to $51,000.

On Turbotax, it is saying my basis is only something like $2599. I understand the calculation that the IRS provides for calculating the basis, but don't think its fair. I was already taxed on the $8000 in those previous years. Why isn't my basis $8000?

Also, what's the best way to calculate basis on a mutual fund. I put in $1100 over a period of 4 years (from automatic decuctions from my checking account) and I cashed out in 1998 for $1904. Do I add back the did amounts I paid for dividends I paid the previous years?

Thanks
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