I think I'm beginning to understandwhat I need to do in order to determinethe taxes I would owe if I sold my funds.I do have another related question, the answerto which will probably help me to understand thiswhole subject a little better:Hypothetical: I own a fund for 10 years. The only additional shares purchased arethrough capital gains and dividend reinvestment.Obviously, taxes are paid yearly. As of12/31/1998 the fund is valued at $10,000.I sell a full position in a mutual fund (noprevious shares had been sold) on 06/01/1999.The value of the fund at that time is now $12,000. Why can't $10,000 be the cost basis, $2,000be the capital gains, and $400 be the capital gains tax owed (based on 20%). (Also assuming that there is no reinvestmentbetween 01/01/1999 - 06/01/1999)I understand that this is not right but I hopethe answer to why it is wrong will help me to finally understand this wonderful worldof taxes. Thanks to all-
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