Mutual Funds

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  • you're responsible for paying income tax on your share of the net capital gains by the fund
  • your portion of the gains will be reported annually on Form 1099-DIV
  • your capital gains can vary significantly from the actual change in value in the shares of the fund
    • if you buy shares in a fund for $100 and it's worth $95 at the end of the year, and that fund sold it's shares for a short term capital gain then you still have to pay tax on your share of the capital gains event though your shares just lost value
    • note: the opposite could also be true

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  • 15 days ago by vince