Specific identification is one of three methods to determine the cost basis of the mutual fund shares you sell.
Under this method, the shares sold are identified by specific purchase date. If you bought shares at different times, you can pick the ones you paid the most for and say that you sold them. That reduces the amount of your capital gain, but you get the same proceeds. This method requires accurate records. You also must notify your fund of the quantities and purchase dates of the shares to be sold. You should also get confirmation from the taxman.
Related Fool Articles
Related Community Blogs
Recent Mentions on Fool.com
- 3 Credit Scams You Need to Watch Out For
- 3 Ways to Save Yourself and Your Wallet From Your Brain at the Grocery Store
- NXP Semiconductors NV Keeps Delivering for Its Long-Term Shareholders
- G2E 2014: Why Las Vegas Sands' Sheldon Adelson is Fighting Online Gaming
- What Apple Inc.?s New Products Mean for Broadcom Corporation
- Is Apple Pay Going to Kill Your Credit Card?