Disclaimer: No one here is my accountant and nothing in this thread is financial advice. I’m just looking for some info.
Back in the 90s I purchased a mutual find direct from the Mutual Fund company (that was a thing in the 90s that I don’t think they do anymore). Let’s say I put in $2500 over the course of a year (just making up numbers). I kept it and held it for a very long time. Last year I sold it for $2900.
Here is my question: when I do my taxes this year am I going to pay taxes on the $2900 or just the profit I made, $400? The 1099 I got only provides the amount I got (understandably), do I need some kind of paperwork to prove what I paid in? Does the fact that I paid in over a period of time or so long ago matter? I am not sure how this will work.
This is new to me so I appreciate any information people more familiar with how this works can provide. Thank you.