|
#4
02-20-2006, 07:59 AM
| |||
| |||
 Re: tax on selling mutual fund. Most major fund families (Fidelity included) will tell your basis via the average share method for a sale. I believe Fidelity also will tell you the selected share basis after some date (1993?) if you specify such at sales time. Fidelity even tells you gain in real time as the market changes during the day. A 1099 currently does not tell you the basis, but there is a bill in Congress to change this. << ================================================== ===== > << 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. > << ================================================== ===== > |
|
#3
02-19-2006, 10:48 AM
| |||
| |||
| Re: tax on selling mutual fund. - quote - > > I had bought $5000 worth of a fidelity fund 7 years ago.
Thank you all for great replies. Omid> > I have paid tax on a total of $854.00 on long term capital > > gain and 234.00 ordinary dividends. At this time my account > > worths $6245.00! My question is that how the paid taxes on > > prior distributions will be accounted at the final sale. Is > > my gain (loss) = 6245 - (50000 + 854 + 234)?. Is there any > > IRS publications or any web sites to explain? > That's correct if you reinvested the distributions -- the > reinvested distributions add to the cost basis. If you > received the distributions in cash then you ignore them for > purposes of calculating your taxes on the sale. Barry Margolin wrote: << ================================================== ===== > << 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. > << ================================================== ===== > |
|
#2
02-04-2006, 03:35 AM
| |||
| |||
| Re: tax on selling mutual fund. "omid" <omidalavi12[at]hotmail.com> wrote: - quote - > I had bought $5000 worth of a fidelity fund 7 years ago.
That's correct if you reinvested the distributions -- the> I have paid tax on a total of $854.00 on long term capital > gain and 234.00 ordinary dividends. At this time my account > worths $6245.00! My question is that how the paid taxes on > prior distributions will be accounted at the final sale. Is > my gain (loss) = 6245 - (50000 + 854 + 234)?. Is there any > IRS publications or any web sites to explain? reinvested distributions add to the cost basis. If you received the distributions in cash then you ignore them for purposes of calculating your taxes on the sale. -- Barry Margolin, barmar[at]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. > << ================================================== ===== > |
|
#1
02-04-2006, 02:37 AM
| |||
| |||
| Re: tax on selling mutual fund. - quote - > I had bought $5000 worth of a fidelity fund 7 years ago.
If the dividend and capital gain distributions were> I have paid tax on a total of $854.00 on long term capital > gain and 234.00 ordinary dividends. At this time my account > worths $6245.00! My question is that how the paid taxes on > prior distributions will be accounted at the final sale. Is > my gain (loss) = 6245 - (50000 + 854 + 234)?. reinvested in the fund, your calculation is correct. Since you bought more shares with the distributions, the distributions became part of your cost basis. On the other hand, if you withdrew the distributions when they were issued, then your cost basis remains $5000. - quote - > ... Is there any IRS publications or any web sites to explain?
IRS Publication 564.<< ================================================== ===== > << 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. > << ================================================== ===== > |
|
02-04-2006, 02:37 AM
| |||
| |||
| Re: tax on selling mutual fund. "omid" <omidalavi12[at]hotmail.com> writes: - quote - > I had bought $5000 worth of a fidelity fund 7 years ago.
I assume you mean on capital gain distributions (as opposed> I have paid tax on a total of $854.00 on long term capital > gain to a gain on sale of shares). - quote - > and 234.00 ordinary dividends. At this time my account
Yes.> worths $6245.00! My question is that how the paid taxes on > prior distributions will be accounted at the final sale. Is > my gain (loss) = 6245 - (50000 + 854 + 234)?. - quote - > Is there any IRS publications or any web sites to explain?
IRS Publication 550.Remember, all a reinvestment is, is another purchase. A reinvestment is simply the fund sending you a check and you sending the check right back to them to buy more shares. -- Rich Carreiro rlcarr[at]animato.arlington.ma.us << ================================================== ===== > << 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. > << ================================================== ===== > |
|
#-1
02-03-2006, 05:14 AM
| |||
| |||
| tax on selling mutual fund. I had bought $5000 worth of a fidelity fund 7 years ago. I have paid tax on a total of $854.00 on long term capital gain and 234.00 ordinary dividends. At this time my account worths $6245.00! My question is that how the paid taxes on prior distributions will be accounted at the final sale. Is my gain (loss) = 6245 - (50000 + 854 + 234)?. Is there any IRS publications or any web sites to explain? Thanks in advance, Omid << ================================================== ===== > << 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. > << ================================================== ===== > |
| Tags |
| fund, mutual, selling, tax |
Similar Threads | ||||
| Thread | Forum | Replies | Last Post | |
| Selling mutual fund shares Stageman: Hi, I'm buying a mutual fund on a monthly basis. I recorded accuratly all transactions in Money. In one of the investment report where you can... | Microsoft Money | 1 | 01-24-2006 05:15 PM | |
| Recording a consolidation fund transaction in a mutual fund. SS: How do you record the transaction when you have mutual funds that combine (a consolidation) I have a Scudder IRA and last year they closed one of... | Microsoft Money | 1 | 01-20-2006 11:16 PM | |
| gains and selling mutual fund shares Dave: I sold some shares of a mutual fund I own a few years ago. At that time, I used the FIFO method for calculating and reporting to the IRS. Now I... | Taxes | 7 | 12-01-2003 05:03 PM | |
| M2004: Can a money market fund be changed to regular mutual fund? Aloke Prasad: My retirement plan (TSP for Govt employees) used a system of providing quarterly valuations. I handled this by creating an investment called CFund... | Microsoft Money | 4 | 08-26-2003 01:36 AM | |
| Mutual Fund ??? fountain 27: I can not get the "gain" column to calculate correctly on the mutual funds I own? Any suggestions? | Microsoft Money | 1 | 07-13-2003 09:48 PM | |
| Thread Tools | |
| Display Modes | |
| |
Linear Mode
