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You will need to first determine which shares are long-term (> 1 year) or short term gains (< 1 year).

Determine which month in the past is the cutoff point for gains (shares purchased in Dec 1997 or earlier are long term gains).

Long Term Shares = shares owned as of Dec 1997.
Short Term Shares = shares owned now - Long Term Shares.

Once you have determined which shares belong where, calculate your basis for each. Your total basis for each type of gain is just total cost for all the shares. (You don't need to worry about how many shares were bought when, just how much money was put in).

This calculation is easy. Just add up all your contributions + dividends for each type of gain. This is your cost basis.

For example:

You invest $10,000 Jan 1, 1995.
Each month you contribute $200.
Each year, you are paid $500 dividends (just to keep it simple)

Total long term basis: 10,000 + 3 years * 200 contrib * 12 + 3 years * 500 div. = $18,700
Total short term basis: 1 year * 200 contrib * 12 + 1 year * 500 div. = $2,900

In order to calculate your gain/loss, take the number of shares you got above plus the current share price:

long term gain/loss = (current share price * long term shares) - long term basis.
short term gain/loss = (current share price * short term shares) - short term basis.

rustedSoul
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