Frequently Asked Questions
Please select a topic from the list on the left. You will then be able to choose a specific question from the list of the most common and important questions our shareholders ask. If you ever need more information, or can't find the question or topic you want to explore, please call our Shareholder Services Representatives at 800-422-1050, Monday through Friday, between 8:00 a.m. and 6:00 p.m. Eastern time.
Cost basis is the original value of your mutual fund shares for tax purposes (usually the purchase price), adjusted for stock splits, dividends and return of capital distributions. This value is used to determine the capital gain or loss when your shares are sold. The gain or loss is the difference between the market value of your shares when sold and the cost basis of your shares. Cost basis is also known as "tax basis".
Internal Revenue Service (IRS) regulations require mutual funds to provide cost basis information for shares acquired after January 1, 2012 to shareholders and the IRS.
Cost basis information can be found on your quarterly statement. If you have established Online Access for your account, you may also view your cost basis information via our website 24 hours a day. To register for Online Access or log in to your account, click here.
Cost basis is not tracked on these types of accounts because the price per share does not normally fluctuate and redemptions are not reported on form 1099-B.
No, cost basis is not tracked on these types of accounts.
No. Harbor Funds will not recalculate redemptions prior to January 1, 2012, but will continue to provide Average Cost basis information for shares acquired prior to January 1, 2012 when available.
Harbor Funds offers several accounting methods for valuing the cost of shares sold in an account. Please review the following available methods:
Please keep in mind that each of these cost basis methods applies only to "covered shares", which are shares purchased after January 1, 2012.
Since each shareholder's tax situation is different, you may want to consult your qualified tax advisor for guidance on your cost basis selection.
If you have established Online Access for your account you may elect a new cost basis method, for your existing account(s) and future accounts, via our website 24 hours a day. To register for Online Access or log in to your account, click here.
You can also utilize the Cost Basis Election Form via DocuSign. The form will automatically be sent to our Shareholder Services Representatives to make the necessary updates to your account.
You may also select a different method by completing the Cost Basis Election Form.
Mail the form to the appropriate address below.
First class mail to:
P.O. Box 804660
Chicago, IL 60680-4108
Express or registered mail to:
111 South Wacker Drive
Chicago, IL 60606-4302
Please be aware that Harbor Funds is not responsible for any mail that is lost or misdirected by the U.S. Post Office or any other delivery service.
Yes, you can request a one-time override of your previous choice at the time of redemption without permanently changing the cost basis method on your account.
Yes. You are required to report cost basis information for all shares redeemed or exchanged, as well as capital gains and losses on your transactions for both covered and noncovered shares.
When reporting cost basis information on your federal and state income taxes, you should carefully review the cost basis information provided by Harbor Funds and make any necessary adjustment to cost basis, holding periods or wash sales. You are solely responsible for complying with all federal and state income tax laws when filing income tax returns.
Under current IRS regulations, a wash sale occurs when a shareholder sells mutual fund shares at a loss and within 30 days before or after the sale, the shareholder purchased substantially identical shares. If a wash sale is identified, this loss would be disallowed for the current year.
For the purpose of determining wash sales, Harbor tracks purchases and sales of identical shares within the same account. If a wash sale occurred, it will be reported as such on Form 1099-B. Please note that Harbor does not track wash sales across different registrations (for example, between an individual account and a joint account) and shareholders are still obligated to correctly account for all wash sales when filing an income tax return.
Whatever method you have elected on your account will apply to all sales, including automatic withdrawals, automatic exchanges, or checkwriting redemptions. If you don't choose a method, Harbor will continue to use average cost for all automated sales of shares.
Harbor Capital and its associates do not provide legal or tax advice.
Any tax-related discussion contained in this material, including any attachments/links, is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding any tax penalties or (ii) promoting, marketing, or recommending to any other party any transaction or matter addressed herein. Please consult your independent legal counsel and/or tax professional regarding any legal or tax issues raised in this material.