Selling a mutual fund ?

[kbrisson]

I have a brokerage account with Schwab containing positions in about 15 mutual funds. All are set to reinvest dividends, and I have never sold any in the 13 years I've had the account.

I am at a point where I'd like to sell Schwab Total Bond Market Index fund that I've held for 10 years. I am doing this to rebalance my portfolio more into stock funds. I have tabulated all of the 10 years worth of transactions into a spreadsheet. Most are monthly dividends reinvested, plus two cash purchases: $1,500 to open the fund in Jan '98 and $ 700 in Aug '01

I have two questions:
1. How can I determine if the fund has made money for me over the time I've owned it ?
2. How would I determine gain/loss to be used on Schedule D once tax time comes next year ?

[tomew]

I am not an expert on this. But, in the past when I have sold mutual funds, the brokerage has sent information on the cost basis and the profit (or loss). I would consider calling Schwab and asking whether they have this information.

This is assuming you haven't kept the old statements. If that is the case you could check those. You mentioned you have tracked it in Excel, that might be complete enough. But it also sounds like you purchased a number of shares possibly at different times. When you buy and sell portions of the same fund at different times you have to calculate the cost basis, which can be complicated. So the easiest approach is likely to get a statement from Schwab with the calculated cost basis.

If there is a lot of money and lot of different transactions, this would definitely be the case where I would consult an accountant.

Great question though, it seems like something that should be more straightforward and easier to track.

[B Simple]

If you purchased these shares through Schwab they should have keep the cost basis information for you. If you purchased the shares somewhere else then transferred the funds to Schwab you will need to obtain the statements from previous company where you purchased the shares.

[urvi88]

Originally Posted by B Simple

If you purchased these shares through Schwab they should have keep the cost basis information for you. If you purchased the shares somewhere else then transferred the funds to Schwab you will need to obtain the statements from previous company where you purchased the shares.

Ya i agree with B Simple that schwab should keep cost basis info for you.

[darryl]

Mutual funds involve a transaction cost which is namely entry load and exit load.A very obvious reason to sell would be when you need money. We all invest money with a view to finance some need or a desire in the future.

[Money Beagle]

The above information is true. They should send you a tax statement at the end of the year with the information needed to calculate your tax impact. I would agree that it might make sense to call Schwab and see if they can give you the cost basis now so that if you have any estimated taxes due as a result of the sale, you'll be able to somewhat accurately make those calculations.

Good luck.