1. Money
Mutual Fund Cost Basis
Sample Spreadsheet
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Here's a sample spreadsheet I created using a typical mutual fund scenario. Our hypothetical shareholder invested $10,000 in a large, well-known mutual fund on September 3rd, 2004, and subsequently made additional monthly investments of $250 on the first of each month. The mutual fund distributed dividend income, which the shareholder reinvested. The cost basis using the specific identification method is shown. Also, the holding periods are shown as of October 2005.

Our hypothetical investor may want to sell all, some, or none of her shares. However, knowing the cost basis is crucial to figuring out the potential capital gains. If the investor is going to sell some of her shares, she will use one of the four accounting methods for calculating capital gain on mutual fund shares.

Actual Cost Basis using Specific Identification
Buy Date Buy Price No. Shares Comment Cost Basis Per Share Holding Period
09/03/04 10,000.00 382.56 Initial investment 26.14 LT
09/24/04 34.43 1.32 Reinvested dividends 26.11 LT
10/01/04 250.00 9.38 Additional investment 26.65 LT
11/01/04 250.00 9.36 Additional investment 26.72 ST
12/01/04 250.00 8.82 Additional investment 28.35 ST
12/23/04 78.17 2.73 Reinvested dividends 28.68 ST
01/03/05 250.00 8.78 Additional investment 28.49 ST
02/01/05 250.00 8.87 Additional investment 28.19 ST
03/01/05 250.00 8.70 Additional investment 28.75 ST
03/23/05 48.45 1.74 Reinvested dividends 27.78 ST
04/01/05 250.00 8.99 Additional investment 27.81 ST
05/02/05 250.00 9.10 Additional investment 27.47 ST
06/01/05 250.00 8.74 Additional investment 28.62 ST
06/24/05 42.22 1.49 Reinvested dividends 28.42 ST
07/01/05 250.00 8.74 Additional investment 28.59 ST
08/01/05 250.00 8.41 Additional investment 29.72 ST
09/01/05 250.00 8.49 Additional investment 29.44 ST
10/03/05 250.00 8.47 Additional investment 29.51 ST
Subtotal 13,453.27 504.67


Average cost basis for all shares 26.66

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