Over the past few years, the percentage of mutual funds with capital gains distributions
has climbed markedly.
M2 EQUITYBITES-December 15, 2015-AllianceBernstein Income Fund announces one time special and capital gains distributions
With the duration of the bull market, capital gains distributions
are growing in many mutual funds.
announced today annual reinvested capital gains distributions
for the 2013 tax year to unitholders of the RBC Target Maturity Corporate Bond ETFs.
You may not know your exact gain or loss position until early December," when most mutual funds make capital gains distributions
, says Eleanore K.
Capital gains distributions
may occur in any type of long-term fund that might realize a profit on a security sale - even a so-called tax free municipal bond fund.
However, if you're going to attempt to reduce your client's tax liability, you should act well before then, since most funds make their annual capital gains distributions
in December and some as early as October.
There are ways to still invest in mutual funds toward the end of the year and duck the capital gains distributions
These losses can also offset capital gains distributions
from mutual funds.
Essentially, there are three ways to incur tax liabilities from mutual funds: capital gains distributions
by the fund; dividend distributions by the fund; and capital gains arising from the sale or exchange of shares.