Mutual Fund Capital Gains


V

VSLARRY

When a mutual find lists capital gains on its 1099, does
that include all capital gains that it may have had, or only
those distributed to the shareholders of the fund?
 
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H

Herb Smith

When a mutual find lists capital gains on its 1099, does
that include all capital gains that it may have had, or only
those distributed to the shareholders of the fund?
A mutual fund is, by law, required to distribute net capital
gains earned by the fund to it's shareholders. The 1099-DIV
that you receive documents your share of the fund's LTCG for
the year.
 
A

A.G. Kalman

When a mutual find lists capital gains on its 1099, does
that include all capital gains that it may have had, or only
those distributed to the shareholders of the fund?
A Mutual Fund company is obligated to distribute all its
earnings to its shareholders.
 
B

Barry Margolin

When a mutual find lists capital gains on its 1099, does
that include all capital gains that it may have had, or only
those distributed to the shareholders of the fund?
The 1099 only shows distributions. Most mutual funds are
required to distribute all of their realized capital gains
to the shareholders, to avoid the fund itself having to pay
taxes.
 
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A

Arthur Kamlet

When a mutual find lists capital gains on its 1099, does
that include all capital gains that it may have had, or only
those distributed to the shareholders of the fund?
A Regulated Investment Company (aka mutual fund) must
distribute substantially all of its capital gains and
earnings, or it will be taxed on those amounts. By
distributing them to the owners, the tax liability goes to
the howners too.

You can be pretty sure the fund will not want to be taxed,
which lowers the NAV for the owners.

__
Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH
 

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