507 Introduction to Calculating Your Cost Basis
How you calculate the cost basis of your funds is very, very important, because it can save you a lot of money in taxes. Don't assume that the IRS will choose the method that is best for you, because it won't. We will look at the four different ways to calculate cost basis in this course.
What you will learn
- Methods for Calculating Cost Basis
- What's the Difference among Methods for Calculating Cost Basis?
What do you know?
Introduction to Calculating Your Cost Basis
Leave it to the IRS to complicate things.
Cost basis may seem pretty straightforward—and it is, if you buy a security only at one point in time. But what if you've been investing a little bit in a fund over a period of years? That's when things get tricky. Choose one method for cost basis over the others and you may be able to keep more for yourself and give less to Uncle Sam.
