Undistributed Capital Gains -Form 2439
A mutual fund usually distributes all its capital gains to its shareholders. The mutual fund company reports these gains on Form 1099-DIV. However, a mutual fund might keep some of its capital gains and pay a tax on them. When this happens, the mutual fund company will send you a Form 2439: Notice to Shareholders of Undistributed Long-Term Capital Gains.
Report these capital gains even though you don’t actually receive them. However, since the mutual fund paid tax on the gains, you can claim a credit for the taxes they pay.
You also need to increase the basis of your mutual fund shares by the difference between these two items:
- Amount of undistributed capital gains you report
- Amount of taxes reported to you as paid
Learn more about mutual fund and stock dividend reinvestments from the tax experts at H&R Block.
When someone sells you property for less than full value, it’s considered a gift of equity. Let H&R Block explain why this might have tax implications.
What is a closing disclosure? When you buy a house, you will receive a closing disclosure that can benefit you at tax time. Learn more at H&R Block.
Did you win it big? Learn more about gambling winnings tax and form W-2G from the tax experts at H&R Block.