Re: gains and selling mutual fund shares

Dave wrote:

> I sold some shares of a mutual fund I own a few years ago.
> At that time, I used the FIFO method for calculating and
> reporting to the IRS. Now I want to sell more shares, and am
> wondering if I am locked in to using the FIFO method from
> now on for selling shares of this fund, or if I can change
> to the (single-category) averaging method.  Any accurate
> advice is much appreciated.

I seem to recall that the rule is as follows:  You can use
cost (FIFO or Specific ID) or average cost.  If you use
average cost, you are locked into that method.  If you use
cost, you can subsequently change to average cost.  Once you
change, you are locked into averaging.

--
Alan
http://taxtopics.net

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