How to Keep Records on Stock & Mutual Fund Purchases

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If you invest in mutual funds, it is important to keep accurate records of every purchase and sale. Keeping your records accurate and up to date will make it much easier to see how you are doing relative to the applicable stock indexes, complete your income tax forms and keep track of how much you may owe the IRS. These steps can help you make intelligent and informed investment decisions going forward.

Things You'll Need

  • Spreadsheet program
  • Mutual fund statements
  • 1099 forms
  • Gather all of the information related to your mutual fund purchases, including purchase and sale statements, monthly, quarterly and annual account statements and 1099 forms. Create a separate pile for each mutual fund you own.

  • Log on to your computer and open your favorite spreadsheet program. Give the spreadsheet a descriptive title and save it to your hard drive. Create a separate worksheet for each of your mutual funds - that will make it easy to track the performance of each fund individually.

  • Enter each purchase of mutual fund shares on a separate line. Create columns for each mutual fund, including the net asset value, the amount of money invested and the date of the investment. Create totals for each column, so you can see how you are doing at a glance.

  • Add the amount of capital gains, the difference between the net sales price and net cost, from each 1099 form you receive from your mutual fund company. Add those capital gains in as additional purchases since this will increase the cost basis, the original amount you paid for the mutual fund, of your holding.

  • Calculate the total cost of your investments in each mutual fund, including the initial purchase, recurring monthly or quarterly investments, and capital gains. This is the current cost basis of your mutual fund. This will be important when you sell the fund, because you may be taxed on the difference between your total cost basis and the total proceeds you realize when you sell. You always want to consult your tax advisor to discuss any tax implications from your investments.

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