Cost Basis Reporting

The Internal Revenue Service (IRS) requires GuideStone Funds, and other mutual fund companies, to provide cost basis information to both shareholders and the IRS when certain mutual fund shares acquired on or after January 1, 2012, are sold or exchanged.

GuideStone Funds defaults Cost Basis Reporting to Average Cost Single Category. You may select any of the options below to apply to all funds selected. To apply cost basis reporting on an individual fund basis, it will be necessary for you to contact GuideStone. Complete contact information will be provided to you upon completion and submittal of your application to open an l Investment Account.

  • Average Cost Single Category: Shares are depleted on a first in first out basis with the cost basis calculated by taking the shares redeemed multiplied by the average cost per share.
  • Lowest Cost, First Out: Shares with lowest cost basis are redeemed first.
  • Last In, First Out: Most recent shares purchased are first redeemed.
  • Highest Cost, First Out: Shares with highest cost basis are redeemed first.
  • First In, First Out: Oldest shares purchased are first redeemed.
  • Specific Lot Identification: The lots to be depleted are specifically chosen by you at the time of redemption. Please note that if you choose this method you will need to identify the lot(s) at the time of your redemption request. If you do not, the redemption will be processed using the FIFO method.
Below are answers to some common questions about cost basis reporting and the impact these reporting requirements will have on your GuideStone Funds account(s).

Frequently Asked Questions

What is cost basis?

The cost basis of mutual fund shares is usually the original cost paid for the shares when they were initially purchased. When these shares are sold or exchanged, you may have a gain or a loss on that transaction, and you may have to pay taxes on any gains earned from the transaction. The capital gain or loss equals the amount realized on the sale minus the cost basis of the shares sold and must be reported to the IRS on your tax return.

In short, cost basis is used to determine capital gains and losses for tax purposes when mutual fund shares are sold or exchanged. There are various methods for calculating cost basis and investors may choose the method they feel is appropriate given their personal tax situation.

Why was a cost basis reporting requirement enacted?

The objective of this law is to help ensure that all investors accurately report realized capital gains and losses of any investments on their annual tax returns.

What happens if I do not choose a cost basis method?

Can I change my method for covered shares at any time? If you do not choose a cost basis method prior to your first sale or exchange of covered shares GuideStone will process the request using our default cost basis method of average cost single category. However, you will still have the option to change your method for any future transactions.

Learn More

Talk to our GuideStone Funds team today.

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You should carefully consider the investment objectives, risks, charges and expenses of the GuideStone Funds® before investing. A prospectus with this and other information about the Funds may be obtained by calling 1-888-GS-FUNDS (1-888-473-8637) or downloading one. It should be read carefully before investing.

GuideStone Funds shares are distributed by Foreside Funds Distributors LLC, not an adviser affiliate. Foreside is not a registered investment adviser and does not provide investment advice.