Question : How does me cashing in on my mutual fund effect my income tax return?
I just cashed in about $1000 of my mutual fund, and I just wanted to know if it will effect my income tax return.
- asked by ceza_us
All Answers:
Answer #1
ya
- answered by gelene76
Answer #2
It depends on how much profit you made, and if itwas short or long term capital gains or dividends.
- answered by Screaming Eagle II
Answer #3
irs doesnt care about what you took out just whatyou made if any and if it was short (under 12months) or long (over 12)
- answered by zyberianwarrior
Answer #4
Most likely, yes. You need to figure out how manyshares you cashed in (it's usually a strangefractional number). Then take the $1,000,subtract any fees you incurred to cash in. Fromthis net proceeds amount, you will subtract yourbasis in those shares. To get your basis, youneed to find your purchase price for those shares,adjust for any basis changes (usually just end upadjusting up for dividends and capital gainspreviously earned and reported on your taxreturn). Subtract your basis from your netproceeds, and that's your gain (or loss). Fedrates vary based on how long you owned the shares,but just for giggles you can estimate at 26% orso. Same for state rules, usually 5-12%, so letssay 7.5%. So 32.5% times your net proceeds willbe a very rough estimate of your taxes due. Ifyou had a loss, you can offset all other gainsfederally (and in the states) and additionally youcan deduct any losses (federally) against regularincome up to $3000
- answered by Rose
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