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You can choose from three methods to report the sale of mutual fund shares. Once you choose a method, you must stick with it as long as you own shares of that mutual fund. However, you can use different methods for different mutual funds
These are the three methods:
Also, when figuring the basis of your mutual fund shares, include these:
If you'd like to learn more, see Publication 564: Mutual Fund Distributions at www.irs.gov.