How are Mutual Funds Taxed?

Distributed short-term capital gains are taxed as ordinary income and distributed dividends and long-term capital gains are taxed as long-term capital gains.

When you sell shares of a mutual fund for a higher price than you paid, you pay either a short- or long-term capital gain tax, depending on how long you own the shares.

For example, if you receive a capital gain distribution and then incur a short-term capital loss on a sale of mutual fund shares you held six months or less, the IRS has a special “Short-Term Capital Loss” rule that applies.

Learn More... Wash Sales and Mutual Funds

^{Please note: This information is provided only as a general guide and is not to be taken as official IRS instructions. Armen Computing Ltd. makes no investment recommendations and does not provide financial, tax or legal advice. Please consult your tax advisor or accountant to discuss your specific situation. You are solely responsible for your investment and tax reporting decisions, and you should carefully evaluate all information delivered to you by Armen Computing Ltd. and TradeLog. Not all information may be appropriate for all investors.}

• Capital Gains
• Wash Sales
• IRS Schedule D
• Mark to Market
• Which Form to File?
• Brokerage Reporting
• Common Misconceptions
• Options
• Futures
• Mutual Funds
• How are Mutual Funds Taxed?
• Wash Sales
• Mutual Fund Dividends
• Dividends