Your loss of $2400 can be counted against other gains or
regular income this year. If you have less than $2400 of
both, then it can be carried forward to future years.

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amyl[at]paxemail.com writes:

- quote -

Does that $4,500 of purchased include the reinvestment of
any dividends/distributions? If not, add those to the
purchase total as well.

- quote -

No. You have (at least) a $2,400 capital loss.

- quote -

The form showing that you sold it for $2,100 and forms
documenting all the purchases (including reinvestments)
you've ever made in the fund.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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- quote -

No.

- quote -

Yes.

- quote -

You will have to give the preparer the form 1099-B that the
mutual fund will send you in the next couple of weeks. This
will show the information about the sale: the date, number
of shares, and how much you received.

You will also have to provide information about the
purchases: at a minimum the purchase dates and the total
"cost basis" of the shares you sold, or the date, number of
shares, and amount paid for each purchase. The fund may
include this information on a separate statement along with
the 1099-B, or show it on the regular statement where the
sale was reported. If not, you should give the preparer the
confirmations you got when you made the purchases, or old
statements showing the purchases. If you don't have any of
these documents, call the fund or the broker you bought it
through and ask them if they can provide the purchase
information. If all else fails, just give the preparer
whatever information you have about the purchases.

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<amyl[at]paxemail.com> wrote:

- quote -

The loss will be listed on your tax return.

Schedule D must be filled out, and that requires seeing the
sales price and date as well as the purchase price(s) and
date(s).

And if there were any dividends or capital gains
distributions that were reinvested to buy more shares of the
fund, the statments showing these are needed.

--

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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amyl[at]paxemail.com wrote:

- quote -

No. When you sell securities, you're taxed only on the
capital gain, i.e. the profit you made.

- quote -

The loss will be used to offset gains you made on other
sales. If you end up with a net loss, you can use the first
$3,000 of it to offset ordinary income. If this was your
only investment sale this year, you have a net $2,400 loss,
so it will be like a deduction.

You need to provide your tax preparer with the statements
showing the initial purchases of the funds, and the 1099-B
that the mutual fund will send you for the sale.

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA

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This year I closed out my holdings in a poor performing
mutual fund. I purchased the fund in 1999. I purchased a
total of $4,500 dollars worth of the fund in between two
different purchases. I sold it for $2,100 this year hence a
significant loss at least according to my standards

I will be having someone do my taxes this year, but I wanted
to have some knowledge on this particular aspect. Would
someone possibly answer the following question or shed some
light on the situation?

1.) Is the $2,100 counted as taxable income this year?
2.) Someone at my work mentioned that the loss might be tax
deductible is this true. If so, what supporting
documentation would I need to provide the tax preparer?

Thank you,
Amy.

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