Message Font: Serif | Sans-Serif
No. of Recommendations: 0
This is my first post. Prior to stumbling upon "The Motley Fool Inveatment Guide" earlier this year, I invested in managed mutual funds. The other day I found out(through Bill Mann's "Fund owners: prepare for Pain" 12-1-00) that even though I have lost(non-qualified)money on all of my funds this year(except Weitz Value), I will need to pay taxes on the capital gains that others have realized! I heard that I could legally AVOID paying taxes on these gains if I sell these funds before the end of this year. I recognize that I will, of course, take a loss upon selling these funds, but I could use this loss to offset my ordinary income tax liability and carry the excess loss forward to offset future capital gains. Is this true? If so, do I need to liquidate these mutual funds before the fund company's fiscal year-end or before the fund company sends me a notice to pay the taxes? Or do I simply need to liquidate these funds before December 31? A guy at Schwab told me that I got it all wrong. He said that I would need to sell the funds if I wanted to use the loss to offset the taxes from the mutual fund capital gains. He said there is no way I was going to AVOID paying taxes on the capital gains by simply selling the funds before the end of the year. Is he right? Can some out there help me with this? Thanks, Buck
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.