Ask Terry Questions cost basis

cost basis

By Terry Savage on May 03, 2024 | Taxes & Economy

Hello I have a taxable mutual fund for 25 years that has grown . I need to redeem it to purchase a house . Do you know what is the best selection to set my cost basis at before I redeem it I was thinking Average or (FIFO) thank you very much .

Terry Says

Ask the mutual fund company to give you an average cost basis — especially if you’re going to sell all of it to buy the home.  Then your accountant can calculate the capital gains tax you’ll owe.



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