Taxable gains on 1099div in 2008

Enzo IX · Post by **Enzo IX** » Tue Oct 14, 2008 3:27 pm

With all the redemptions on mutual funds going on this year, looks like it's going be one of those years where I'm gonna pay income taxes on gains within the fund. I hate these years, portfolio goes down and pay taxes to boot, Great!

wab · Post by **wab** » Tue Oct 14, 2008 3:32 pm

Haven't you been harvesting losses? You can offset cap gains reported by the funds as well as your own capital gains. As well as $3000 in earned income. And you can carry forward forever.

TLH is good.

rob · Post by **rob** » Tue Oct 14, 2008 3:43 pm

Yup.... nothing like a bit of salt on that open gouge....... One of the added benefits to the TaxManaged funds IMO (I know some don't like the restrictions but...).

TLH carry-over is not quite "forever" - At some point you die

Certainly worth selling some losers to make up for the gains.

Enzo IX · Post by **Enzo IX** » Tue Oct 14, 2008 3:56 pm

Wab,

Yes I have done some TLH, but I had a real estate contract cash out in 2008 and the TLH on my funds probably will make that a wash.

I understand the phantom gain within the fund, but it just cracks me up when I look at my portfolio and have to pay taxes on the gain in January.

Wishing the best for everyone,

Doug

Dale_G · Post by **Dale_G** » Tue Oct 14, 2008 5:31 pm

I don't think equity funds will be distributing capital gains this year -
except perhaps for "short" funds.

In the case of equity index funds, if they are selling, they should be selling the high cost shares and incurring capital losses.

edited to fix typo

Dale

gassert · Post by **gassert** » Tue Oct 14, 2008 8:33 pm

You dont think there will be cap gains this year? way wrong. Jan 08 was near the top of 5 years of gains. Lots of mangers held positions and sold in the new year so as not to repeast the terrible pass throughs of 2007, now they can certainly write off against losses, but I promise there are funds which will have massive losses for the year and also distribute capital gains. This will not make people happy.