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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121185  
Subject: Re: Capital gains Calculation Date: 6/17/2009 12:48 AM
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Here is the answer I got from her when I asked for clarification:
"My concern over the capital gains is that in a fund environment versus a direct investing (individual stocks) you do not have control over when capital gains are passed through from the fund as the manager makes that decision inside of the fund as to what to sell/buy. If he/she decides to sell a position inside of the fund that generates a gain, that is passed onto you. You may have capital gains from the fund while still experiencing a decrease in market value. With individual stocks, you have total control over when the position is sold and thus can control your gains. This is only a concern to me in your Trust account since it is money that is already taxed....."
This is actually different than what she said in a phone call, which I posted originally. I care because I have to pay taxes, and I have to know how much to pay.


Gains from a mutual fund are usually distributed once (around December) or twice (spring and December) a year. You consider the income earned when distributed to you, regardless of when the fund manager actually sold the stock. You can use an Annualized Income calculator such as Edcosoft recommended (and his happens to be one of the best) to minimize the amount of estimated tax you have to pay early in the tax year and defer as much of that tax payment until January or April 2010.

Ira
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