We have mutual funds at Vanguard that are non-IRA that we keep as emergency funds. Every year at tax time, I get very confused about exchanges or sales made during the year and how they are taxed, figuring basis etc. Can someone recommend a book or website that explains in very plain language exactly how this all works? For example, I am not clear on why exchanges are taxed as sales and how to keep all that straight so as not to be over-taxed on future exchanges or sales.