Cost Basis Transactions

Transactions Affecting Cost Basis where Share Ownership Changes

For an asset, your cost basis increases when you do one of the following.

• Buy shares
• Receive shares (e.g. as a gift)

For an asset, your cost basis decreases when you do one of the following.

• Sell shares
• Send shares (e.g. as a gift)

Transactions Affecting Cost Basis where Share Ownership Does Not Change

Capital transactions allow you to change your cost basis in an investment and affect cash without affect the number of shares of the asset you own.

Example

Capital Return: You receive funds from an LLC or private fund where capital is returned to you without reducing your ownership of shares.

Cost Basis Election

• In Settings>General, you can set the default method for calculating your cost basis election on capital gains.
• You may also set an automatic cost basis election override for each asset class.
• When entering a closing transaction on a position, you may override either of these default settings.