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URL:  http://boards.fool.com/i-recently-sold-off-2-mutual-funds-to-pay-the-11043658.aspx

Subject:  Re: Mutual Funds, Capital Gains - I'm lost Date:  7/13/1999  3:55 PM
Author:  hghcpa Number:  17251 of 123001

I recently sold off 2 mutual funds to pay the
downpayment on a house I just bought. For arguments
sake, lets say I have 3 other funds that I currently
have money invested in. I sold the two worst
perfoming funds of the 5. However, 1 of the
remaining 3 is also doing terribly (and has been for
awhile).

My questions: Is it worthwhile to sell this 1 fund
and reinvest elsewhere now...or should I wait
until next year to avoid additional taxes?
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I would say this would depend on whether or not you have any unrecognized gains in the fund - IE will it sell at a net gain or loss; and whether the first two sales in fact have generated a gain. If there is a net gain from the first two sales and a potential loss from the third you should be able to offset your losses against the gains.

Also, how are taxes figured on mutual funds when
I have been paying taxes yearly on the funds?
(is there an easy way to calculate what I will
be paying?)
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The capital gains distributions you have been receiving on an annual basis have increased your cost basis in the funds as long as you have elected to reinvest those dividends in additional shares (most likely). The mutual fund company should be able to give you your cost basis - ask them for an "average cost basis report" on your shares sold


Also throw in the fact that I'm getting married
in October and have no clue how that will impact
all of this....
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