How do you calculate cost basis on investments? [Yahoo! Finance]
Alphabet Inc. - Class C Capital Stock (GOOG)
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Source: Yahoo! Finance
Here's everything you need to know about cost basis, including how to calculate it, how it affects your taxes and why it's vital to your investment strategy. Cost basis in investments: What it is and how to calculate it Cost basis is the original value of an investment, typically the price you bought it for. It's used to calculate capital gains or losses when you sell the investment. Cost basis includes the purchase price along with any associated brokerage fees and commissions. Methods to calculate cost basis The cost basis for stocks and mutual funds is generally the price you paid when you purchased the asset, plus any other trading costs. However, there are several methods to calculate cost basis, and each can impact your capital gains or losses differently. The different methods used to calculate cost basis include: First In, First Out (FIFO) : The oldest shares you purchased are sold first. It's the default method used by many brokerages if you don't specify a diffe
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