cnrdean@ucbtopaz.BERKELEY.EDU (11/07/85)
A while back, I saw an inquiry in net.invest about how mutual funds which invest in stocks are taxed. I never saw any responses. Are dividends payed by the mutual funds subject to the dividend exclusion when paying taxes? What about capital gains? (I guess I could look it up in my JK Lassers, but this is easier.) Sam Scalise
johnl@ima.UUCP (11/08/85)
/* Written 12:24 pm Nov 7, 1985 by cnrdean@ucbjade in ima:net.invest */ > Are dividends paid by mutual funds subject to the dividend > exclusion when paying taxes? What about capital gains? So long as the mutual fund behaves as an "investment company," which they all do, the dividends and capital gains and losses pass through from the original issuer to you. The mutual funds generally pay no taxes themselves. This means that dividends qualify for the exclusion if the dividends from which the fund got the money did. In practice this means that dividends from regular stock funds qualify, while those from bond and money market funds don't, since they're passing through interest. John Levine, ima!johnl