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Capital gains: The fund manager may sell securities in the fund for a profit, triggering a capital gains tax. The tax impact will depend on how long the fund held the shares that were sold.
This means you can sell shares of your mutual fund or collect a capital gains distribution without paying the relevant taxes so long as you keep the money in that retirement account.
As with all investment types, you’ll have to pay taxes on your mutual fund returns. Depending on when you bought or sold the mutual fund, you will have to pay capital gains taxes or ordinary ...
State and local taxes often apply to capital gains. In a state whose tax is stated as a percentage of the federal tax liability, the percentage is easy to calculate. Some states structure their taxes differently. In this case, the treatment of long-term and short-term gains does not necessarily correspond to the federal treatment. Capital gains ...
How to Calculate Capital Gains Taxes. ... For 2021, capital gains tax rates in these states range from 2.9% in North Dakota up to 13.3% in California.
The federal government taxes long-term capital gains at the rates of 0%, 15% and 20%, depending on filing status and income. … Continue reading → The post 2021 Capital Gains Tax Rates by State ...
[6] [16] A principal reason for the large variability in revenues is the application of the tax to capital gains distributions from mutual funds. A 2004 report by the Tennessee Advisory Commission on Intergovernmental Relations observed that capital gains from investments had displayed "roller-coaster behavior" over the preceding eight years ...
Mutual funds make distributions of capital gains and other cash at the end of the year, so this can be a last-minute wrench in your plans to claim a 0 percent tax rate, if you own any.
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277 West Nationwide Boulevard, Columbus, OH · Directions · (614) 227-5725