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Subject:  Re: Tax on stocks bought over time Date:  2/7/2000  5:00 AM
Author:  pmarti Number:  27590 of 128041

<< D) none of the above

If (D) is the answer, please describe what should happen. >>

The first thing you should do is be wary of whoever introduced you to the concept of an "adjusted cost basis" for stocks. There is no such animal. There is an average cost basis for mutual funds, but it doesn't apply to stocks.

The second thing you should do is read up in this board's FAQ on calculating capital gains. There you will find that each purchase stands on its own when determining basis.

Phil Marti
Tax Preparer
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