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Mutual Fund Taxation

Learn more about the tax implications of investing in mutual funds.

Top 10 Things to Know About Mutual Fund Taxation
How do I reduce taxes on mutual funds? Which types of funds are best for taxable accounts? Why did I receive a 1099? Understanding mutual fund taxation will help you improve your overall returns by being a smarter investor.

How Are Mutual Funds Taxed?
Are mutual funds taxed differently than other investments? What are the basics of mutual fund taxation?

How to Reduce Taxes on Mutual Funds
Reducing taxes is one of the best ways to increase your net investment returns. Therefore, a good tax strategy is an integral aspect of a good investment strategy.

Tax Diversification With Mutual Funds
Learn how to diversify your mutual funds to minimize taxes and maximize returns.

Lump Sum Distribution - Definition
What is a lump sum distribution? What is the best way to invest the cash from a 401(k) or IRA rollover? Find out what to do when you are given distribution options from your retirement accounts.

What To Do With Your 1099
What do I do with my 1099? Do I have to file it with my taxes? Does the IRS need a copy? Why did I receive a 1099? There are more than a dozen different types of 1099 forms but the most common 1099 forms are generated from investing activities, such as dividends, capital gains and IRA and 401(k) distributions and rollovers.

What is Asset Location?
You've heard of asset allocation but what about asset location? The placement, in terms of which account, taxable or tax-advantaged, is an important investing decision that has significant impact on an investors returns and taxation.

What is Form 5498?
What is form 5498? When should you receive it and what should you do with it?

Tax-Efficient Funds
The failure to understand and apply the basic concepts of tax-efficient investing is among the biggest mistakes made by investors. Learn how and where to use tax-efficient mutual funds.

Dividend Dates - Explanation, Strategies and Cautions
How does the Ex-Dividend date for stocks work? When are the best and worst times to buy stocks in relation to dividend dates?

How Mutual Fund Dividends Are Taxed
What are dividends and how are mutual fund investors taxed on dividends? Understanding the basics of dividends and mutual fund taxation is essential to investing success.

Year-end Checklist for Investing and Taxes
At the end of each year, investors need to check several items to prepare for taxes, investing strategies and more. Review certain items to determine if any required actions are needed prior to year-end.

What is Turnover Ratio?
It is no coincidence that the mutual funds with the lowest turnover ratios generally produce higher average returns to the investor over time. Learn more about turnover ratio and become a better mutual fund investor.

Tax Loss Harvesting
What is tax loss harvesting? Understanding the tax consequences (capital gains and capital losses) of selling stocks and stock mutual funds is an important aspect of successful investing practices.

Mutual Fund Capital Gains Distributions
Each year, generally in the last couple of months of the year, mutual fund shareholders face the possibility of receiving capital gains distributions from their mutual funds. Dont be fooled by the capital gains distributions. These are not gains of the good sort.

Dreaded Short-Term Capital Gains Distributions
Short-term capital gains distributions are often a misunderstood aspect, and always a dreaded part, of mutual fund investing. Financial advisors, sophisticated investors and novices alike, forget the rules relating to this unpleasant feature of mutual funds we know as short-term capital gains distributions.

3 Limitations of Donating Mutual Funds to Charity
If you have been generous enough to gift shares of your mutual fund to charity, then you may be curious of the tax implications. It is not safe to assume that you will receive a full federal tax deduction your charitable donations of mutual funds.

Plan Ahead for Your Capital Gain Distributions
To help shareholders prepare for capital gain distributions, mutual fund companies generally post capital gain distribution estimates beginning in October. These capital gain distribution estimates can help mutual fund investors (who own funds held in taxable accounts) plan ahead for tax day.

Calling All Fund Investors; Remember the Foreign Tax Credit
Have you ever heard of the foreign tax credit? If you own international mutual funds in a taxable account, it’s time to make yourself aware of the foreign tax credit.

The Basics of Mutual Fund Taxation
An excellent primer on the taxation of mutual funds from William Perez, the About.com Guide to Tax Planning.

How Mutual Funds Can Cause Big Tax Payments In Bear Markets
Many investors that hold mutual funds outside of a tax-advantaged account such a 401(k) or Roth IRA are going to receive a rude awakening when their broker sends them their year-end tax documents. Average people that experienced losses of 30%, 40%, and even 50% or more are likely to find that they owe capital gains taxes on these losers.

Capital Gains Tax: Essential Tax Tips
Detailed, essential tax tips for capital gains and losses from William Perez, the About.com Guide to Tax Planning.

Taxation of Mutual Fund Dividends
Mutual funds distribute ordinary dividends, qualified dividends and short-term capital gains (not to mention long-term capital gains). This article at Fairmark.com will help you understand the details of mutual fund dividend taxation.

Buying and Selling Mutual Fund Shares
Vanguard provides advice on embedded capital gains in a mutual fund portfolio. If the gains represent a significant portion of the fund's net asset value (NAV) and the record date of the next capital gains distribution is near, you may want to delay your purchase until after the record date.

2009 Mutual Fund Cap Gain Distribution Estimates
A fact of life is that if you make money, you pay taxes. Unfortunately, with mutual funds, you may not make money at all and still be forced to pay taxes on cap gain distributions. Learn more about cap gain distributions and how to plan ahead in order to avoid or, at the very least, minimize the tax impact and liability of the distributions.

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