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Author: RheS Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121592  
Subject: Re: Mutual Fund Cost Basis Date: 12/22/1998 3:00 PM
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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
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