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I sold some mutual fund shares (actually I converted them into another fund within the same brokerage)

Same thing

and now I have a 1099-B with the gross proceeds listed. Do I owe capital gains taxes on the sale/conversion of these shares?

Well, you have a capital gain or loss. Whether you owe tax depends on which it is.

If so, how do I figure my cost basis since I have had this fund since 1993 and reinvested all dividends and capital gains?

You add up everything you invested, cash and reinvested distributions. Then you split it between shares held more than a year (line 8 of Schedule D) and the rest (line 1 of Schedule D). See the Schedule D instructions and IRS Publication 564.

Besides, I thought I had already paid taxes each year on the dividends and gains, so do I get taxed again?

You did and you don't. By adding those previously taxed distributions to your basis, you reduce your capital gain on the sale.

Phil Marti
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