The special rules described on this page may convert some or all of your short-term loss into long-term loss — or into a nondeductible loss — when you sell shares held six months or less after receiving certain kinds of dividends. Overview When a mutual fund pays a dividend, the value of the fund goes … Continue reading “Shares Held Six Months or Less”
This page explains the average basis method for mutual fund shares. You may want to know this so you can perform these calculations in a situation where figures provided by your mutual fund company are not accurate, or simply to have a general understanding of how this method works. Typically this method is easier to use than the separate lot … Continue reading “Using the Average Basis Method”
Q: My stocks went up but I didn’t sell yet. How much gain should I report? A: None! As a general rule you don’t report capital gain or loss until you sell. There are exceptions, such as when you receive capital gain distributions from a mutual fund. Q: Does a capital gain increase my income? … Continue reading “Capital Gain FAQs”
Perhaps you’re already familiar with the Roth IRA and want to know how Roth accounts in employer plans, known as designated Roth accounts, stack up. Here’s a rundown of the major differences. No income limitation The Roth IRA isn’t available to taxpayers with income above certain levels. For unmarried filers, the contribution limit begins to … Continue reading “Designated Roth Account Compared with Roth IRA”
Unlike rollovers, a conversion from a traditional IRA to a Roth IRA is taxable. Amount taxable If all of your contributions to all of your traditional IRAs have been deductible, then the full amount of your rollover is taxable. Q: Can I report part of this amount as capital gain? A: No, it’s all ordinary … Continue reading “Conversion Consequences”
