How do you increase basis in stocks to decrease reportible profits
If you invest in mutual funds or stocks which pay dividends and you keep the funds re-invested, then the basis in these stocks will increase. So you want to be careful to include all dividends in your adjusted cost basis to prevent overpaying on your taxes and your stocks sales. These individual stocks are often DRIP or dividend re-investment incentive plans. Just because your broker sends you out a statement does not mean it has all costs correctly stated. Look at it to be sure. I have often found brokers statements to be in error.
