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There is no good way to get out of mutual funds without paying the capital gains taxes unless you never had any. It is possible that over all the years you owned your funds the net asset value for all shares is lower than you'll sell them. Highly unlikely though or you would have sold the fund(s) earlier. There are several ways to figure your cost basis per share one being the first in, first out. Essentially you sell each share bought first before selling any bought later. That way you sell long term holdings first versus short term holdings. This way you save on taxes by not selling short term holdings first and being taxed at the ordinary tax rate for you. Long term taxes are down to 20% not the 28% or higher most investers pay for ordinary income. The easiest is to just average the cost basis of all shares purchased and reinvested. Yes you may have a somewhat higher cost basis, but not enough to worry about. Also your computer program, let's say Quicken, figures this average cost basis first, even though it will let you do it by lot. The main thing to keep in mind is which ever method you use with a fund, you must use that method for figuring cost basis until fund is liquidated completely. Good luck.
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