Sunset
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I'm looking ahead a couple of months as we sold a couple of mutual funds
Thankfully we sold the entire amount in each one, so there is not a partial sale complication.
Unlike ETFs or stocks, it turns out the calculations on MF sale is complex.
Beginning in the tax year 2012, the IRS requires MF companies and brokers to track and report to you the capital gains from 2012 onwards.
But if you have a MF from 2004, it could easily be up to the individual to know the capital gains (plus re-invested dividends).
What makes this extra tricky is the individual already paid taxes each year on the declared dividends and capital gain, yet the final sale price of the MF is not really connected to the cumulative CG and dividends.
Now the IRS will take average, FIFO, and some other method, but I don't know which is better or even easier.
Is there an excel spreadsheet of this type of calculation or suggestions ?
Thankfully we sold the entire amount in each one, so there is not a partial sale complication.
Unlike ETFs or stocks, it turns out the calculations on MF sale is complex.
Beginning in the tax year 2012, the IRS requires MF companies and brokers to track and report to you the capital gains from 2012 onwards.
But if you have a MF from 2004, it could easily be up to the individual to know the capital gains (plus re-invested dividends).
What makes this extra tricky is the individual already paid taxes each year on the declared dividends and capital gain, yet the final sale price of the MF is not really connected to the cumulative CG and dividends.
Now the IRS will take average, FIFO, and some other method, but I don't know which is better or even easier.
Is there an excel spreadsheet of this type of calculation or suggestions ?