What is considered a long/short-term capital gain as it relates to my mutual fund?
Short-term capital gains occur when there are sales of securities in a fund that are held for one year or less. For federal tax purposes, these gains are taxed as ordinary income. Short-term gains are taxed as ordinary income at your marginal tax rate ranging from 10% to 35% under federal income tax rules. Long-term capital gains occur when there are gains from the sale of securities that are held for more than 12 months. Long-term capital gains from sales will be taxed at 15% (0% if your top marginal rate is 10% or 15%) for taxable accounts. Why do I have a capital gain distribution when my fund value is down? The fund may have realized a capital gain from selling securities within the portfolio of the fund. The overall value of the fund may be down, however, the capital gain must be distributed to the shareholders. What if I have additional questions? If you have additional questions that we were unable to answer here, or have questions relating specifically to your tax situation, pl
