Mutual Funds – Is the cost basis adjusted

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I am ready to perparing my tax and I noticed that there is an adjustment to the cost basis of my mutual fund which comes from a return of capital. How do you take this into account for the tax purpose? Am I supposed to deduct this amount from the " Cost" I paid to purchase the mutual fund? What is teh easiest way to track the large gain when I sell it out ? That is to say, if I am re-investing the dividends from the funds, need I add these into the basis?? I am a rookie to this kind of information. I am really not certain about this. Any help, will be appreciated!
 
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------ What is the easiest way to track the large gain when I sell it out ? ------
If you trade through a broker or your bank or whoever you purchase your stocks and funds through might keep accurate records of cost bases for your holdings, thats the easiest way, try asking them. if not, just have spread sheet update it at the end of the year or using a tax software to import your trade data from the online brokers.
-----------If I am re-investing the dividends from the funds, need I add these into the basis?.....
YES.
 

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