Originally Posted by just_hatched
Do they help with cost basis calculations for taxes?* Is it harder to calculate cost basis if you have your dividends re-invested each quarter?
Yes, you keep more of your gains the less you sell. If you have losses though, you want to sell this before the end of year and perhaps buy back after 30 days. Let me repeat: always harvest your tax losses.
My experience is similar to CFBs.* The mutual fund companies don't keep track of things for you the way you would want them to.
Yes, it is harder to calculate cost basis if you have your dividends re-invested.
For more help, here's the IRS publication on all this:
Another tip: learn to use the IRS web site to your advantage.