Cost Basis & Good Records

Your cost basis determines how much tax you owe when you sell. Here is how basis is tracked, the methods brokers use to pick which shares you sold and which records to keep, and for how long. General education, not tax advice.

What cost basis includes

Cost basis is generally what you paid for an investment, including commissions, adjusted for events like stock splits, reinvested dividends and return-of-capital payments. Brokers track basis for most stocks bought since 2011 and most funds bought since 2012, called covered securities. For older or transferred shares, you may need your own records.

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