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<<I read through many posts and FAQ but could not find this specific situation. I just want to make sure I am doing this right. >>

I'll try...

<<In 1993 I bought $22,000 of 'Utility A' and continued buying monthly for the next two years, reinvesting the Long Term, Short Term and Dividends along the way.>>

So...are you saying that you bougt into some type of mutul fund? You say "Utility A", which indicates to me that you purchase the shares of the utility. The rules are completely different depending upon how you respond to this question.

<< Th 'average' cost being about $13 a share This was all put into 'Quicken', thinking it would simplify the tax processing (what a fool, opps sorry). In November, I sold the total out of pocket investment of $28,000 at about $12.70 a share. I used the FIFO method, and when the TurboTax program figured it, The cost basis was determined by the program to be $15,000 and a capitol gain of $13,000. In figuring the actual cost of the FIFO stocks, I figure a loss of about $1,300.>>

You can't use "average" cost for stock. You are stuck with either FIFO or specific shares method. If you "reinvested" the dividends, what you actually did was purchase different (new) shares and different times and prices...and they MUST be accounted for separately. Period. You can't "average" nuttin.

<<Now the question: Am I doing something wrong or is TurboTax doing some wrong calculations?>>

Since I can't see the computations, I have no idea who is right or wrong. But I can tell you that tracing the basis of your shares will be a bit more difficult than you might think. So once you 're-work' your numbers given the above information, it might help you arrive at the correct answer.

TMF Taxes
Roy
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