The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Avoid Mutual Fund taxes by getting stock ? Date:  9/21/1998  1:28 PM
Author:  gsr Number:  5413 of 127614

I am in the process of becoming Foolish and slowly exiting Mutual Funds in favor of direct investing into stocks.

My question is: Can you postpone capital gains taxes on money that is in these mutual funds by receiving stock instead of cash ?

I remember several prospecti saying that the mutual funds had the Option to send you stock certificates if selling stocks to raise cash would be disruptive to other fund members.

I was just wondering if you could ask for 166 shares of Dell @60 instead of $10,000 and just move your cost basis of say $4000 over to the stock and not have to immediately pay gains on $6000 ?

Thanks in Advance
-Greg Reynolds / gsr
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us