Home Page link  

mutual fund sale and reporting

  
Groups | Search | About
User Password
Register Now! Lost Password?

Taxes General Forum - Tax professionals meeting place and answers to queries. (Moderated)

 Post an article  get this group's latest topics as an RSS feed add this group's latest topics to your My MSN content add this group's latest topics to your My Yahoo content  add this group's latest topics to your Google content  YahooMyWeb Yahoo!  Google Google  Windows Live Favorites Windows Live  del.icio.us del.icio.us  digg digg  Add to Netscape Netscape
Subject Author Date
mutual fund sale and reporting gsk 06-08-2006
Posted by gsk on June 8, 2006, 2:42 pm
Please log in for more thread options
 Can someone help me figure out how to report on the sale of
a mutual fund. I bought the mutual fund way back in 1993,
through the years I received cap gain and dividends which
were reinvested back on the same fund. I sold everything
last June. The bank did not provide me with cost basis.
How shall I report. Do I add all the cap gain and dividends
to my original cost and bottom line would be my cost basis?
how about short term and long term cap gain? Please help.

Tnx
gsk

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Bill on June 10, 2006, 4:00 pm
Please log in for more thread options
 coucoukhoury@yahoo.com (gsk) posted:

> Can someone help me figure out how to report
> on the sale of a mutual fund. I bought the
> mutual fund way back in 1993, through the
> years I received cap gain and dividends which
> were reinvested back on the same fund. I sold
> everything last June. The bank did not provide
> me with cost basis. How shall I report. Do I
> add all the cap gain and dividends to my
> original cost and bottom line would be my cost
> basis? how about short term and long term
> cap gain? Please help.

You're on the right track. You should add all of the
reinvested dividends and capital gain distributions to your
cost basis. For everything that was reinvested 1 year or
more before you sold the fund, all of your gains are long
term.

For the limited amonts reinvested during the last year
before selling, you will have to compute a separate item --
either gain or loss -- and enter it as a short term capital
gain(loss).

If you have good records (as it seems you do), it's really
just a math problem to add up everything you reinvested plus
your original cost to compute the full basis vs your net
realization at the time of sale.

Bill

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Herb Smith on June 10, 2006, 4:00 pm
Please log in for more thread options
gsk wrote:

> Can someone help me figure out how to report on the sale of
> a mutual fund. I bought the mutual fund way back in 1993,
> through the years I received cap gain and dividends which
> were reinvested back on the same fund. I sold everything
> last June. The bank did not provide me with cost basis.
> How shall I report. Do I add all the cap gain and dividends
> to my original cost and bottom line would be my cost basis?

That's the one.

> how about short term and long term cap gain? Please help.

Make two totals. One for purchases and reinvested dividends
more than one year prior to date of sale (long term) and one
for purchases within one year of sale. Allocate the sales
price in the same manner. Report the results on Line 1 and 8
of your Schedule D.

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Barry Margolin on June 10, 2006, 4:00 pm
Please log in for more thread options

> Can someone help me figure out how to report on the sale of
> a mutual fund. I bought the mutual fund way back in 1993,
> through the years I received cap gain and dividends which
> were reinvested back on the same fund. I sold everything
> last June. The bank did not provide me with cost basis.
> How shall I report. Do I add all the cap gain and dividends
> to my original cost and bottom line would be my cost basis?

Basically, yes.

> how about short term and long term cap gain? Please help.

That's the only wrinkle, you need to separate the long term
and short term. Find your statements from the year before
you sold, and any distributions during that time would count
as short-term, while the original purchase and all other
distributions would be long-term. Pro-rate the total
proceeds of the sale to the two terms based on the number of
shares.

You can enter each of these as a single item on Schedule D
-- enter "various" for the purchase dates.

--
Barry Margolin, barmar@alum.mit.edu
Arlington, MA
*** PLEASE don't copy me on replies, I'll read them in the group ***

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by ed on June 10, 2006, 4:19 pm
Please log in for more thread options
gsk wrote:

> Can someone help me figure out how to report on the sale of
> a mutual fund. I bought the mutual fund way back in 1993,
> through the years I received cap gain and dividends which
> were reinvested back on the same fund. I sold everything
> last June. The bank did not provide me with cost basis.
> How shall I report. Do I add all the cap gain and dividends
> to my original cost and bottom line would be my cost basis?
> how about short term and long term cap gain? Please help.

You are correct. Add all the reinvestments to basis.
Everything would be long term except the dividends
reinvested within a year of the sale, and those shares will
be a short term sale. Do not add them to the basis of the
original shares or year old dividends.

ed

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Similar ThreadsPosted
Taxability of payment from a Qualified Settlement Fund (QSF) for mutual fund fraud April 28, 2007, 5:03 pm
Mutual Fund to 529 ... February 18, 2007, 3:50 am
Selling mutual fund tax question March 28, 2008, 2:59 pm
short-term cap gains in mutual fund? December 8, 2006, 2:26 am
401k bond mutual fund tax question May 7, 2007, 1:09 pm
Mutual Fund Transfer: How to deal Capital Loss? November 12, 2006, 4:03 pm
Advantages of having mutual fund company withhold taxes for first-time home purchase distribution? March 20, 2007, 3:05 pm
Earliest age to fund an IRA December 12, 2006, 1:37 am
SEC Fair fund June 1, 2007, 10:42 am
SEC Fair fund June 1, 2007, 10:42 am

Contact Us | Privacy Policy
This site is not affiliated with Intuit - makers of Quickbooks and Quicken software
This site is not affiliated with Sage Software - makers of Peachtree accounting software
XML SitemapXML Sitemap