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[[Thanks for your reply. You say: "Well, if your tax bite would be less by selling the newer shares
(assuming that you can qualify for the
"specific identification" method...see my post on that issue in the Taxes FAQ area), that might be
the best deal for least at this time."

I'm wondering what the rules are for "specific id" for mutual funds. I went to the Tax FAQ area and
all it says is the rules are different for mutual funds than for stock. Where can I find the mutual fund

The best place would be IRS Publications 550 and 564 at the IRS web site. But, briefly, the actual cost of individual shares of stock can be used for basis if they are "adequately identified". If the stock is held by a broker or agent, shares are considered to be "adequately identified" if...
1. you specify the particular shares to be sold, and
2. your broker provides written confirmation

(again...I believe that the court case referenced in my FAQ may reduce the "confirmation" might want to go back and check it out again)

Obviously, if you actually posess the mutual fund certificates, the designation of a certain certificate would be the best possible way to properly identify the shares.

TMF Taxes

SPECIAL NOTE: Remember that this response is not the "last word" on your situation. It is really only a starting point. Make sure to review the "Read This First" post
( for additional information. In addition, many of your questions may already be referenced in the Taxes Frequently Asked Questions area. In order to visit the Taxes FAQ area, go to the Fool's School area ( and check out "Other Features" in the list box, OR you can jump directly to the Taxes FAQ area ( Additionally, if any references were made to the IRS Web Site, you can get there by pointing your web browser to (
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