By Financial Advisor Peter Egolf
The same taxation principles inside mutual fund and ETF investment funds apply to individual investors' purchase and sale of those investment vehicles. When an investor purchases a mutual fund or ETF, the taxation time clock begins.
If an investor sells an investment at one year or earlier, they will likely owe short-term capital gains. If the investor sells the investment after one year, they will potentially owe long-term capital gains. These gains will appear on the Form 1040, Schedule D of the investor's federal income tax return1. Likewise, the investor's place of residence will determine whether they are liable for additional state and local capital gains taxes.
v 2.4.71 | © One Day In July LLC. All Rights Reserved.
