short-term cap gains in mutual fund?

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Subject Author Date short-term cap gains in mutual fund? George 12-08-2006  Re: short-term cap gains in mutual fund? Phil Marti 12-08-2006  Re: short-term cap gains in mutual fund? Benjamin Yazersky CPA 12-09-2006
Posted by George on December 8, 2006, 2:26 am Please log in for more thread options The "estimated 2006 capital gains distribution" for a mutual fund of mine lists both short-term and long-term gains. But, their 2005 1099 just listed "total" cap gains, which also seems to be what TaxCut 2005 expected. Googling around, it looks like short-term gains really are supposed to be taxed as ordinary income, which sounds vaguely familiar, but leaves me fairly befuddled. - Did I screw up my 2005 taxes? - Is something different for 2006? - Something else? Thanks, George << ======================================================= >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2006) - All rights reserved. >> << ======================================================= >> Posted by Phil Marti on December 8, 2006, 3:23 pm Please log in for more thread options > The "estimated 2006 capital gains distribution" for a mutual > fund of mine lists both short-term and long-term gains. > But, their 2005 1099 just listed "total" cap gains, which > also seems to be what TaxCut 2005 expected. > > Googling around, it looks like short-term gains really are > supposed to be taxed as ordinary income, which sounds > vaguely familiar, but leaves me fairly befuddled. > > - Did I screw up my 2005 taxes? > - Is something different for 2006? > - Something else? Short-term capital gains realized by the fund aren't reported separately on the 1099 and are not included in the cap gains amount. What they report as cap gains on the 1099 is what you report on your return as long-term gains. -- Phil Marti Clarksburg, MD << ======================================================= >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2006) - All rights reserved. >> << ======================================================= >> Posted by Benjamin Yazersky CPA on December 9, 2006, 6:42 am Please log in for more thread options > The "estimated 2006 capital gains distribution" for a mutual > fund of mine lists both short-term and long-term gains. > But, their 2005 1099 just listed "total" cap gains, which > also seems to be what TaxCut 2005 expected. > > Googling around, it looks like short-term gains really are > supposed to be taxed as ordinary income, which sounds > vaguely familiar, but leaves me fairly befuddled. > > - Did I screw up my 2005 taxes? > - Is something different for 2006? > - Something else? Short term capital gains are normally included in the ordinary dividends amount. They are not qualified dividends. This type of 1099 reporting can cause issues with fiduciary accounting where short term gains need to be segregated. ___________________________________ <<< Benjamin Yazersky, CPA [NJ & NY] >>> -----> real address on hobokeni or hobokenx <----- << ======================================================= >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2006) - All rights reserved. >> << ======================================================= >> Similar Threads Posted 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 Mutual fund fee January 17, 2009, 12:44 pm Selling mutual fund tax question March 28, 2008, 2:59 pm mutual fund sale and reporting June 8, 2006, 2:42 pm 401k bond mutual fund tax question May 7, 2007, 1:09 pm Capital loss on mutual fund sales March 27, 2009, 10:47 pm Re: Capital loss on mutual fund sales March 27, 2009, 11:22 pm Reporting mutual fund dividends on 1099-DIV March 14, 2010, 8:11 pm Mutual Fund Transfer: How to deal Capital Loss? November 12, 2006, 4:03 pm