Directing capital gains to a different fund

[Stwicky]

Within my taxable fidelity account I would like to change the dividend and cap gain treatment to pay the cap gains distributed from one fund to buy additional shares of another fund in the portfolio. By doing so will these capital gains now be considered short term and be taxed at a higher rate?

 

[COcheesehead]

It depends on the time frame in which they are distributed. Where they go is inconsequential.

 

[audreyh1]

Within my taxable fidelity account I would like to change the dividend and cap gain treatment to pay the cap gains distributed from one fund to buy additional shares of another fund in the portfolio. By doing so will these capital gains now be considered short term and be taxed at a higher rate?

Directing dividend or capital gains distributions to a different fund does not change the tax treatment of the distribution.

 

[DrRoy]

Directing dividend or capital gains distributions to a different fund does not change the tax treatment of the distribution.

+1.