[[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 once...am I correct about this?.]]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 TaxesRoy
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