Investors: Before you sell, know the basics of basis
Abstract: Investors who are selling shares of stock, mutual funds or other investments need to familiarize themselves with the cost basis rules before they call their broker. They also need to understand the different accounting methods available for determining which shares to sell; the method they choose can have a big impact on their tax bill. This article discusses basis and the wash sale rule and examines the tax implications of three specific accounting methods. It also discusses new reporting rules; a sidebar chart shows which securities are subject to these rules.