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I'm new to all this so don't laugh if this is a really simple question :-)
I've owned a mutal fund for about 5 years and recently sold it for a slight gain over the original purchase price. The thing is that I have been reinvesting dividends over the years.
So do I pay capital gain on:
(sale proceeds) - (original investment + dividends)
or
((sale price per share) - (average purchase price per share)) * (total # shares sold)
or something else. Thanks.
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