Using the Average Basis Method

This page explains the average basis method for mutual fund shares. You may want to know this so you can perform these calculations in a situation where figures provided by your mutual fund company are not accurate, or simply to have a general understanding of how this method works. Typically this method is easier to use than the separate lot … Continue reading “Using the Average Basis Method”

Capital Gain FAQs

Q: My stocks went up but I didn’t sell yet. How much gain should I report? A: None! As a general rule you don’t report capital gain or loss until you sell. There are exceptions, such as when you receive capital gain distributions from a mutual fund. Q: Does a capital gain increase my income? … Continue reading “Capital Gain FAQs”

Conversion Consequences

Unlike rollovers, a conversion from a traditional IRA to a Roth IRA is taxable. Amount taxable If all of your contributions to all of your traditional IRAs have been deductible, then the full amount of your rollover is taxable. Q: Can I report part of this amount as capital gain? A: No, it’s all ordinary … Continue reading “Conversion Consequences”