Trying to do some end of year tax planning.
Anyone thought about capital gains for 2009?
About a month before - or sometimes two - the fund company will provide a best guess estimate and actual dates. I start looking for this in October.How does one go about estimating what one's capital-gains
distributions are going to be - given that they typically occur
in December ? Mostly Vanguard funds and ETFs ...
ST cap gains distributions from funds are treated as ordinary income and not offset by your cap loss carryover.
I'm not sure this is correct.
ST cap gains, when they end up being taxed, are taxed at your marginal rate, I believe. But I thought STCGs did go on schedule D and would be offset by the carryover (probably after the carryover was applied to any LTCGs).
But I've never been in that situation, so I don't know for sure.
2Cor521
I was sure surprised when I learned about this principle some years ago. If I remember, even when you sell your loss will not cancel the ordinary income you received due to the debt forgiveness.Wow, that is a big swing.
We have one real estate investment that is struggling. The managing member of the LLC managed to get a write down of the mortgage debt. That will be passed through as income to us members (over a several year period). Talk about a kick in the teeth. Not sure we will ever get our investment back plus now we have phantom ordinary income from the forgiveness of debt.
Oops!
I was sure surprised when I learned about this principle some years ago. If I remember, even when you sell your loss will not cancel the ordinary income you received due to the debt forgiveness.
Ha