cost basis with gains and dividends
client has 50k cost basis back in 2010.
Account is worth 109k today.
a. does the cost basis go up since she paid tax on the capital gains and dividends each year?
or…
b. does the cost basis stay the same?
Thank you,
Douglas.
Permalink Submitted by Alan - IRA critic on Thu, 2015-08-13 20:53
No change if distributions are not reinvested. If reinvested the total cost basis would go up, and if average cost is being used the average cost per share could either go up or down.