Home Page link  

short-term cap gains in mutual fund?

  
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
short-term cap gains in mutual fund? George 12-08-2006
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 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
mutual fund sale and reporting June 8, 2006, 2:42 pm
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
Mutual fund average basis rule - when can you revert to cost basis (actual cost of each share)? November 27, 2008, 8:23 pm
Earliest age to fund an IRA December 12, 2006, 1:37 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