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Financial Planning / Tax Strategies


Subject:  Tax rates on Mutual Funds Cap Gains Date:  12/3/1998  3:26 PM
Author:  harmonyintouch Number:  6726 of 127613

OK, so I want to sell some of my Mutual Funds in order to invest that money in stocks. I know that the Funds must pay out the capital gains before the end of the year to holders of the funds. I am in the 15% tax bracket, and don't expect these gains to push me up into a higher bracket, (but it is possible). If I sell the funds before the end of the year, to avoid the Cap gains pay out, aren't I going to have to pay the same taxes on them anyway because I will have sold the Funds and realized LT cap gains from the sale? Based on this concern, is ther any advantage in selling the Funds before year end?
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