Basis Computations

Basis computations and determining which stocks or shares of a mutual fund determines which method to use for mutual funds, are critical to reducing your taxes.
  • See Spring 97, page 2, Newsletter for the various ways to compute the basis of your mutual funds.
  • DRIPS (Divided Reinvestment Plans) usually have a higher tax basis than the original shares you purchased.

mutfundstrat.gif (86078 bytes)

mutfunstrat2.gif (38453 bytes)