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Author: tc001 Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121219  
Subject: Re: Schedule D line 13... Date: 3/28/1998 7:28 PM
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<I can't figure out where line 13-column g figure actually comes from...Is it a portion of the total cap gain distribution from column f? What caluculation actually produces that number..>

Column 13g is the portion of column 13f that is being taxed at (up to) 28%. If you subtract 13g from 13f, the remainder will be the amount to which the new 10%/20% rates apply. The number comes from Form 1099 or an addendum to the 1099.

Each company (typically a mutual fund) handles the reporting of the 28% rate differently, and in some cases, terribly. Some are very clear; they simple state 'This is the amount to report in column 13g'. Others have decided that the stress of completing tax forms is overrated, so they hide the information in an account summary designed by a five-year-old to see if you can spend another hour of your life trying to decipher the illogical number puzzle without needing to call 911 for emergency medical assistance.

In either case, the company must provide the information because there is absolutely no way for you to determine the amount on your own. The amount represents investments the company made that falls under the new law of being sold before May 7, 1997 or after July 28, 1997 if held more than a year but less than 18 months.

Obviously, you never know the exact details of what occurs within a mutual fund so you rely on the company to do the calculation. If you owned the individual shares of stock yourself, then you would know the purchase date, sale date, prices, and share amounts to figure everything out for yourself.
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