People invest with the hope of earning a return over time. But what happens when you choose to sell? Cost basis is key to understanding your tax obligations and the true profit of your investments.

James Chen, CMT is an expert trader, investment adviser, and global market strategist. Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee, and has a degree in accounting and ...

Learn how the average cost basis method helps calculate mutual fund gains or losses for tax reporting, and explore ...

Cost basis is the purchase cost of a particular security, including commission charges. Importantly, a cost basis can be established over a series of purchases of the same security, not just one trade ...