Basis questions

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exodusing
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Joined: Thu Oct 13, 2022 7:32 am

Basis questions

Post by exodusing »

1) Is my understanding correct that if I sell shares of an investment using the average basis method, then I can't change to another method without the permission of the IRS (at least for all shares currently owned)?

2) How do you compute the average basis for shares when you've both bought and sold shares on multiple dates at multiple prices? I would have thought it's your net cost (taking into account what you've paid and any sales proceeds) divided by the number of shares you now own, but when I look at Vanguard's website I see slightly different numbers. Also, how would in-kind transfers out be treated. They obviously decrease shares, but how do they affect net cost?
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