cost basis of fund when sell and have didvidends reinvested
Reinvested Cost Basis. When you reinvest dividends, you buy the stock at a different share price than you originally paid. For example, if you bought a stock at $20 per share and you bought 100 shares, you invested 100 times 20 for a total of $2,000. The cost basis of your investment was $2,000.f you reinvested dividends in a stock before you sold it, you changed your cost basis. In the example, you originally invested $2,000, but you reinvested $200 in money you received from dividends. Your cost basis rose to $2,200.
A taxable capital gain is the difference between your selling price for shares and the price you paid for the shares. Your purchase price for shares is called your cost basis. Reinvested dividends are taxed when earned and then add to your cost basis in the investment for capital gains purposes.For example, you invested $1,000 in a mutual fund and have earned and reinvested $50 in dividends. As a result your cost basis is $1,050. taxable capital gain is the difference between your selling price for shares and the price you paid for the shares. Your purchase price for shares is called your cost basis. Reinvested dividends are taxed when earned and then add to your cost basis in the investment for capital gains purposes.