Message Font: Serif | Sans-Serif
No. of Recommendations: 0
[[Q. If i hold shares in a fund without adding any more cash for over 18 months, then sell it, i will be
taxed at the long term rate.]]

Only if your dividends are not reinvested.

[[ Then I realized that during this time, reinvested diividends and cap gains
are being reinvested (but I think only put in at the end of the years) SO....then some of my money
will be taxed at Short term or intermidiate rates if i sell all at I correct about

Absolutely correct. When dividends are reinvested, you are actually buying additional shares of the fund at new prices and with new holding periods. The only way around this would be to elect to be PAID the dividends, rather than reinvesting them.

TMF Taxes
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.