jwp@uwmacc.UUCP (Jeffrey W Percival) (10/29/85)
I just recently got into two funds, my first ever. I don't know what sort of information they provide at tax time. How much help are the end of year statements in filing tax returns? Is it really true that stock market mutual fund earnings do not qualify for the $200 (?) dividend deduction? I was hoping they would; my Andrew Tobias book recommends that I get enough low-risk stock to take advantage of the full value of this deduction. Will I have to go out and buy real stock shares, from an authentic broker (gasp!) in order to do this? Are there any other subtleties to keep in mind when dealing with mutual funds? Or stockbrokers? Thanks for any info! Jeff (a fledgling investor) -- Jeff Percival ...!uwvax!uwmacc!jwp
wjh@bonnie.UUCP (Bill Hery) (11/08/85)
> .........................................................Is it > really true that stock market mutual fund earnings do not qualify > for the $200 (?) dividend deduction? In a common stock the earnings the mutual fund had will be in qualifying dividends (regular dividends), long term capital gains, short term capital gains, and non-qualifying dividends (e.g., from interest). They should report to you your pro rata share of these categories, and you report them to the IRS as such. Thus, the qualifying dividend portion can be excluded up to the $200 limit, and the l.t. capital gains taxed at the lower rate. This is based on my experience with a few funds and myown reading of IRS and other publications. I've had no problems reporting to IRS this way.