Capital Gain Distributions

Capital Gains Distribution

An amount of money paid to shareholders of a mutual fund from its capital gains over the course of a year. That is, a mutual fund takes its capital gains over a year and divides them among shareholders, who are then responsible for capital gains taxes. Capital gains distributions are usually made at the end of each calendar year and they reduce the fund's net asset value. Because of the existence of capital gains distributions, some analysts advise against purchasing mutual funds at the end of a calendar year because a shareholder will become instantly liable for capital gains taxes.

Capital Gain Distributions

Amounts paid by mutual funds, regulated investment companies, and real estate investment trusts that represent the shareholder's portion of gain from the sale of capital assets owned by these investment companies. Capital gain distributions are taxed in the year constructively received and are always considered to be held long term.
References in periodicals archive ?
M2 EQUITYBITES-September 10, 2015-Cohen & Steers Total Return Realty Fund Inc announces quarterly and capital gain distributions
Manage increasing mutual fund capital gain distributions
As a result, mutual funds and real estate investment trusts reporting capital gain distributions to their shareholders must identify, the types of capital gains distributed.
2614 per share, for aggregate additional annual capital gain distributions of $0.
When an estate or trust owns shares of a regulated investment company (RIC), the question often arises as to whether short-term capital gain distributions received from the RIC should be allocated to the estate's or trust's accounting income or corpus; that is, should the distributions be treated as ordinary income or capital gain?
SAN FRANCISCO -- The Forward Funds have announced short- and long-term capital gain distributions.
1131 per share, 31% represents short-term capital gain distributions and 13% represents long-term capital gain distributions.
49 per share paid in each of the last three quarters of 2006 are classified for income tax purposes as capital gain distributions taxable at the 15 percent rate.
1125 per share, 39% represents short-term capital gain distributions, and 13% represents return of capital.
DIVIDEND CAPITAL REALTY INCOME ALLOCATION FUND DECLARES SPECIAL INCOME AND CAPITAL GAIN DISTRIBUTIONS
have announced the following income dividends and capital gain distributions.
Ex-dividend date for the special income dividend and capital gain distributions is December 19, 2006.