I have been a buy and hold investor for a long time. The selling I have done has been very minimal and I hardly sell in a taxable account. I have two mutual funds (in taxable account) which I want to trim a bit but I am afraid of the implications. I haven't invested new money in the accounts in over a year so its my understanding my gains will be considered long term and hence subjected to a 15% tax hit. What I am concerned about is the mistake I hear some investors make regarding reinvested dividends. From what I understand if you reinvested dividends into the same fund, your cost basis goes up and in a sense, your tax hit is greater than it should be. The problem is that I hear you need to have detailed reports of your purchases to navigate around this risk. I do not have such reports (face punch?) and until recently, mutual fund managers weren't required to track this level of information. What should I/Can I do? I hope I gave you all the information you need to help me. Thanks!