What methods can be used to calculate cost basis (for covered shares)?

The IRS has approved the following methods to calculate cost basis for covered shares.

Method Description
Average Cost This method calculates an Average Cost per share by dividing the total of all investments (including reinvested dividends and capital gains) by the total number of shares in the account.
Note: This method will be the default method chosen for your covered shares. No action is required to select this method.
First-In, First-Out (FIFO) Shares purchased first (the oldest shares in the account) are the first shares sold.
Last-In, First-Out (LIFO) Shares purchased last (the newest shares in the account) are the first shares sold.
High-Cost, First-Out (HIFO) Shares purchased at the highest price per share are the first shares sold (regardless of purchase date).
Low-Cost, First-Out (LOFO) Shares purchased at the lowest price per share are the first shares sold (regardless of purchase date).
Loss/Gain Utilization Shares are sold with the objective of minimizing gains. Shares that represent a loss are sold before shares that represent a gain.
For shares that yield a:
  • Loss - Shares owned one year or less (short-term shares) will be redeemed before shares owned more than one year (long-term shares).
  • Gain - Long-term shares will be redeemed before short-term shares.
Specific Lot Identification (SLID) Specific shares are selected by the shareholder each time shares are sold.
Important: A secondary method is required in the event the lots you have chosen are not available. You can select one of the following:
  • FIFO—Will be used if no secondary election is made.
  • LIFO
  • HIFO
  • LOFO
  • Loss/Gain Utilization

Net Asset Value
as of 09/25/2020

Global Resources Fund PSPFX $4.68 -0.01 Gold and Precious Metals Fund USERX $13.03 0.04 World Precious Minerals Fund UNWPX $4.93 0.03 China Region Fund USCOX $9.19 No Change Emerging Europe Fund EUROX $5.43 -0.03 All American Equity Fund GBTFX $23.36 0.27 Global Luxury Goods Fund USLUX $16.33 0.10 Near-Term Tax Free Fund NEARX $2.25 No Change U.S. Government Securities Ultra-Short Bond Fund UGSDX $2.00 No Change