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Re: How are mutual funds taxed?
Old 11-03-2005, 07:52 AM   #21
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Re: How are mutual funds taxed?

Quote:
Originally Posted by justin
I doubt the IRS could track down the correct basis if I couldn't.
True, but you have to prove you have any basis at all. The IRS doesn't have to prove anything.
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Re: How are mutual funds taxed?
Old 11-03-2005, 11:26 AM   #22
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Re: How are mutual funds taxed?

I wonder if "I kept this spreadsheet for 50 years, and right there is the basis in cell A4" would suffice for the IRS's evidentiary requirements.

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Re: How are mutual funds taxed?
Old 11-03-2005, 11:52 AM   #23
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Re: How are mutual funds taxed?

Quote:
Originally Posted by justin
I wonder if "I kept this spreadsheet for 50 years, and right there is the basis in cell A4" would suffice for the IRS's evidentiary requirements.

Providing the software 50 years from now can actually read a spredsheet made today.
Besides, your number is just a number without real backup you cannot prove to the IRS the real basis of the fund share unless you have documentation from the fund itself. Otherwise it is just "your" number and is worthless for audit purposes.

The only sure way claim the basis for the fund shares bought many years ago that have no documentation is to give them a zero basis. I am sure the IRS would be fine with that. 8) Otherwise, how can you "prove" the real basis?
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Re: How are mutual funds taxed?
Old 11-03-2005, 12:02 PM   #24
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Re: How are mutual funds taxed?

WHY NOT CALL THE COMPANY THE FUND/SHARES ARE WITH?
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Re: How are mutual funds taxed?
Old 11-03-2005, 03:27 PM   #25
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Re: How are mutual funds taxed?

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WHY NOT CALL THE COMPANY THE FUND/SHARES ARE WITH?
Yeah, good luck with that, thefed. We've been buying shares of Fidelity mutual funds for over 20 years and, if they go back that far, they'll charge you for access to their records. They probably have to send their research weasels far underground into their paper archives in the Berkshires.

Then consider someone like my grandfather, who had been buying from Fidelity since the early '70s...
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Re: How are mutual funds taxed?
Old 11-03-2005, 07:46 PM   #26
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Re: How are mutual funds taxed?

that'd be the easiest solution.i'm sure they have somewhat organized bookkeeping
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Re: How are mutual funds taxed?
Old 11-03-2005, 09:59 PM   #27
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Re: How are mutual funds taxed?

You guys have to go read about how mutual funds are taxed at the source.* Go to the IRS web site and get the info.

http://www.irs.gov/pub/irs-pdf/p564.pdf

Print it out, put it under your pillow when you go to bed, and maybe you can have it all figured out after a few nights.* *Better yet, go ahead and read it.
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Re: How are mutual funds taxed?
Old 11-04-2005, 08:12 AM   #28
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Re: How are mutual funds taxed?

Quote:
Originally Posted by thefed
that'd be the easiest solution.i'm sure they have somewhat organized bookkeeping
I do tax prep, and although it is true that the EASIEST solution is to get the info from the broker, etc., it is also true that getting that info is a monumental task if it goes back a couple of years. I had a couple of clients who were in their seventies, had done business with the broker for many years, had sizable portfolios, and started calling on Januray 1 for info they needed. They still couldn't get it by April 15.

And for the record, they were each dealing with different entities. It's difficult to get any of them to provide you with that information.
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Re: How are mutual funds taxed?
Old 11-04-2005, 08:43 AM   #29
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Re: How are mutual funds taxed?

Quote:
Originally Posted by LOL!

Print it out, put it under your pillow when you go to bed, and maybe you can have it all figured out after a few nights. Better yet, go ahead and read it.
I think you're on to something here. A reverse tooth fairy for retirees: you put a paper product under your pillow and wake up with a new tooth replacing an older crown. Is that how it works?

--Greg
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Re: How are mutual funds taxed?
Old 11-04-2005, 09:10 AM   #30
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Re: How are mutual funds taxed?

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Originally Posted by Apocalypse . . .um . . .SOON
I think you're on to something here. A reverse tooth fairy for retirees: you put a paper product under your pillow and wake up with a new tooth replacing an older crown. Is that how it works?

--Greg
You're pretty close. Put about 2000 paper products in your dentist's hand, and wake up with a new crown in your mouth.

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Re: How are mutual funds taxed?
Old 11-07-2005, 04:56 PM   #31
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Re: How are mutual funds taxed?

http://tinyurl.com/dgmk2

article about cost basis of mutual funds.

It says the IRS will accept a good faith estimate of what your basis is if no records are available.

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Re: How are mutual funds taxed?
Old 05-29-2006, 10:08 PM   #32
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Re: How are mutual funds taxed?

I know this post is rather old, but I've got some money in a mutual fund. Money is put there every month and nothing has ever been taken out. I know that it gives out dividends, but those are reinvested into buying more shares. Until I cash out, do I pay anything to the IRS?
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Re: How are mutual funds taxed?
Old 05-30-2006, 06:02 AM   #33
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Re: How are mutual funds taxed?

h2xblive:

You pay fed income tax on dividends, short term cap gains and long term cap gains distributed to you by the fund each year.* This applies whether you reinvest or take the cash.* The Fund sends you a 1099 each year detailing the amounts.

Haven't you been getting 1099 forms from the fund?* What fund family are you talking about?
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Re: How are mutual funds taxed?
Old 05-30-2006, 06:31 AM   #34
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Re: How are mutual funds taxed?

AGTHX

My tax person ended up saying that until I sell, I pay nothing.

I need to give him a call...
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Re: How are mutual funds taxed?
Old 05-30-2006, 07:23 AM   #35
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Re: How are mutual funds taxed?

h2x:

Is this fund in your IRA? If so, then it is not taxed until distributions are taken out of it. If it is in a taxable account, then it is as youbet stated.
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