![]() ![]() You should consult your tax advisor for additional information which may be relevant In reliance on wash sale information provided by Fidelity. The amount of the disallowed loss is added to the cost basis of the new shares.įidelity makes no warranties with respect to, and specifically disclaims any potential liability resulting from, tax positions which you make The loss from your redemption may be disallowed as a wash sale. If you have a dividend reinvestment on 5/31 and an exchange redemption that results in a loss on 6/12 in the same tax year, some or all of In these cases, the IRS considers the new shares to have "washed." For example, If you sell shares at a loss and buy additional shares in the same investment 30 days before or after the sale (61-day range), you may notĬlaim the loss on your tax return until you sell the new shares. Your gain or loss will be the same in either calculation. However, you can add the fees to the cost basis. Fidelity's 1099-B deducts the fee from the proceeds. ![]() How to treat the fee and service charges you incur when you sell shares of a mutual fund or individual security depends on how the salesĪre reported on your Form 1099-B. Redemption commissions, redemption charges, redemption fees.Reduces future capital gains because your original costs have increased. If you buy shares of mutual fund that has a load (sales charge) or transaction fee, include the charge or fee paid as part of the costīasis, Similarly, commissions, fees, and taxes paid when you buy an individual security should be added to cost basis. Purchase commissions, purchase charges, and purchase fees.You assume per share basis for the new shares in the same way you would for any other type Not the per share basis of existing shares. Reinvest dividends or capital gains, you are purchasing additional shares these purchases may change basis for the total position, but Other transactions which can affect the cost basis of your holdings include the following:ĭividends and capital gain distributions that you receive in cash do not affect the basis per share of existing shares. Events such as splits, spin-offs, and liquidations can all affect cost basis.Ĭonsider consulting a tax advisor with your specific questions about calculating gains and losses in your individual tax situation. Purchase price of a security can have an impact on cost basis. Depending on the type of security, factors other than the original Security, the cost basis of your position in that security will change. Top COST BASIS BASICS What transactions can affect cost basis?Īny transaction that increases or decreases the number of shares in a position can affect cost basis. How are distributions calculated and posted to an account?.How do I submit updated cost basis information to Fidelity?.How do I enter or edit the cost basis information for an eligible lot?.Can I enter or edit the cost basis information for a security?.Why is there a dotted line beneath some of the values? Entering and Editing Cost Basis.Can I use cost basis information provided by Fidelity to make investment or tax decisions?.What cost basis methods are approved by the IRS?.What are the reasons for unknown cost basis?.What transactions can affect cost basis?.Method that you use to determine cost basis. If you previously sold shares of the same security, the cost basis of the shares you still own depends on the To calculate the gains or losses from shares sold, you must know the cost of You may have a capital gain or loss that must be reported to the IRS. When you sell or exchange shares of mutual funds or other securities, Cash Credit/Debit from Unsettled ActivityĬost basis is the original monetary amount paid for shares of a security. ![]()
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