Get Answers

Return to income

Reporting Mutual-Fund Share Sales

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:

  • Average basis -- This is the average cost of all the shares you bought. To learn more, see the Average Basis Method -- Mutual Funds tax tip.
  • First-in, first-out -- You assume the shares you sold were the first ones you bought. To learn more, see the First-In, First-Out Method tax tip.
  • Specific share identification -- You identify the actual shares you want to sell to minimize your capital gain or maximize your loss.

Also, when figuring the basis of your mutual fund shares, include these:

  • Reinvested dividends
  • Reinvested capital-gain distributions
  • Net undistributed long-term capital gains
  • Previously reported wash sales

To learn more, see Publication 564: Mutual Fund Distributions at www.irs.gov.

Ready to file?

You've got your forms. And we've got your back. There's only one thing left to do. Let's do this.

Calculators

So how much will you get (or owe) this year? That’s the million-dollar question. We happen to have three very useful calculators to help you estimate your refund or balance due.

Need Live Support? 1-800-HRBLOCK (1-800-472-5625) or Find An Office