Some mutual funds have x% load charge on purchase and sale.
If I buy a mutual fund, say $10K with a 2% load charge, the mutual fund company gets $9,800. What is my cost basis -- 10K? Or 9,800?
And when I sell, is the load charge a deduction from the sales proceeds -- like a sales commission?
TIA
Load charges are treated the same as commissions. Your cost basis includes the front end charge you paid. Your sales proceeds are measured after any back end fee.
Ira Smilovitz, EA Leonia, NJ
Thanks for the Reply.
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