Correcting Previous Year Tax Return-- Follow Up Question

Feb 16, 2009 1 Replies

In preparing my previous year tax return, I used data from Vanguard's "Average Cost Summary" to obtain the "Average Cost Basis". Would this figure already reflect the reinvested dividends added to the cost basis or do I need to add the dividends paid out on previous years to this figure to get an adjusted cost basis?



========================================= MODERATOR'S COMMENT: Chances are very very good Vanguard already included the reinvested dividends in their average cost basis calculation.


Who knows what Vanguard did.. I cant figure out where they got the information for their average cost on my 1099's so I routinly ignore them and use my actual cost. I suggets you ad all your reinvestment dividends to your initial purchase amount and see if it's the same. I personally abhor average cost and NEVER use it.

ed

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