Answer

Hello XXXXXXXX,

Yes, you report the sale of mutual funds exactly like you would a stock.

The only difference with the sale of a mutual fund is that you can choose a couple of different methods for determining your basis. With a regular stock, if you made multiple purchases of the same stock, then when you sell shares of that stock, you use the cost of the first shares purchased as the ones being sold.

With the sale of a mutual fund, if you have multiple purchases of the same fund, you can average your cost of all the purchases and use your average cost as your basis. Other than that, the sale itself is reported the same way as a stock. If the fund was held less than one year it is reported on Part I of Schedule D as a short term sale and if it was held for more than one year then it is reported in Part II as a long term sale.

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Thank you XXXXXXXX