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Posted by goggleaccount on November 18, 2006, 11:48 pm
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goggleacco...@dodgeit.com wrote:
> I was "forced" to transfer one of the mutual fund shares
> that I had (FUND A) to another mutual fund (FUND B) on Oct
> 31st operated by same group. I have received shares of
> FUND B at its price as on Oct 31st. The description of the
> transfer states "Fund Merge Redeem Non-Taxable"
>
> I had purchased shares of FUND A in one lump five years back
> (at the pinnacle of dot-com bubble) and consistently lost
> the value since then. Thus, the price at which it was
> transferred to FUND B is substantially less than the
> original purchase price. The net capital loss is around
> $3,000.
>
> My question is:
>
> I believe the cost basis for FUND B shares will be the price
> of transfer as on Oct 31st. That being the case, what is
> the fate of my capital loss of $3,000 on FUND A? I don't
> have any capital gains in this year. Is there any way I
> will be able to deduct the capital loss (full or partial
> over next couple of years) in Federal Tax Return from Earned
> Income? Are there any IRS Guides that would address these
> circumstances, as these could be a routine matter?
Thank you every one and I appreciate you taking time to
provide the information
Kyle
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