I own an international bond fund - American Century International bond - BEGBX - that is basically flat for the year. Just up a couple hundred dollars.
They only distribute capital gains and dividends at the end of the year - not monthly as some other international bond funds do (PFUAX and RPIBX, for instance).
My question is simple (I hope!) - if you have a mutual fund that has not gained much since you bought it, and you know a distribution is coming up, isn't it smart to sell the fund before the distribution and then re-buy afterwards? The fund price will drop equal to the distribution, but there won't be any taxes due this year...
Other than capital gains taxes in the case of a run-up (not true in this case), or a wash sale, is there any reason not just to sell, avoid the taxes, and then re-buy? Am I missing something?
On a different note, do all of you ER'ers out there file estimated taxes? What a royal pain-in-the-ass...