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Greetings to All,

I have a question about cost basis for reinvested dividends. Can your cost basis(c/b) be more than what you sold?

Here are the facts: In 2015 I sold some shares of S & P 500(VFIAX) from my account which were held in a taxable account since 2001 in a joint account with my wife.

My initial purchase was in the amount of $5,500 thereafter I added to this amount all the reinvested dividends from 2001 to 6/8/2015 the day I sold part but not all of our shares to take some profit.

On the date of the sale the cost basis was $10,162.57.

On 6/8/15 I sold 41 shares at $192.51 per share for $7,892.91.

My cost basis is greater than my profit. So is my tax a negative number $7,892.91 minus $10,162.57 = ($2,269.66) OR is it a positive number $10,162.57 minus $7,892.91 = $2,269.66???

Now for the short term transaction going back one year from 6/8/15 the following shares were purchased:
.414 shares at $181.01;
.439 " at 185.43;
.517 " at 185.53; and
.476 " at 194.32.

Total shares purchased comes to 1.846 so I now multiple this share number by my sell price of $192.51 = $355.37 short term tax rate.

Any and all help is greatly appreciated. Thank you in advance for your time and consideration in this matter.


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