I'd suggest using the NAIC Accounting program for a drip portfolio even if it's only one person investing. Yes you have to enter the monthly buys but the tax is figured for you. I guess the other programs do that too but I use NAIC Accounting program.
What, has the average cost method been outlawed?Gadzooks! I'm in trouble now!
Hi, Magma!What, has the average cost method been outlawed?The average cost method is not allowed for stocks, only for mutual funds. For stocks, you must know the actual cost basis of shares sold (using either the FIFO or specific share methods), separating the long-term from the short-term holdings. It's not quite as difficult as it sounds. I ran through a short example tax return and some other tax issues here: http://www.fool.com/DRIPPort/1999/DRIPPort990305.htmLet me know if you have any questions!Fool on!Vince
Vince, thank you for this information. I thought I remembered seeing this article about the Taxman Cometh, I printed it out this time so I could study it.Thanks again.2D
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