{"id":20637,"date":"2017-06-14T12:00:00","date_gmt":"2017-06-14T12:00:00","guid":{"rendered":"https:\/\/www.hrblock.com\/tax-center\/"},"modified":"2023-08-29T08:47:21","modified_gmt":"2023-08-29T13:47:21","slug":"undistributed-capital-gains","status":"publish","type":"post","link":"https:\/\/www.hrblock.com\/tax-center\/income\/investments\/undistributed-capital-gains\/","title":{"rendered":"Undistributed Capital Gains &#8211; Form 2439"},"content":{"rendered":"<p>A mutual fund usually distributes all its capital gains to its shareholders. The mutual fund company reports these gains on <a href=\"https:\/\/www.hrblock.com\/tax-center\/irs\/forms\/amending-taxes-for-1099-forms\/\">Form 1099-DIV<\/a>. 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.<\/p>\n<p>Report these capital gains even though you don&#8217;t actually receive them. However, since the mutual fund paid tax on the gains, you can claim a credit for the taxes they pay.<\/p>\n<p>You also need to increase the basis of your mutual fund shares by the difference between these two items:<\/p>\n<ul>\n<li>Amount of undistributed capital gains you report<\/li>\n<li>Amount of taxes reported to you as paid<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>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 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[24,47],"tags":[],"class_list":["post-20637","post","type-post","status-publish","format-standard","hentry","category-income","category-investments"],"acf":[],"yoast_head":"<title>Undistributed Capital Gains Form 2439 | H&amp;R Block<\/title>\n<meta name=\"description\" content=\"Learn more about IRS Form 2439 and get tax answers at H&amp;R Block.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.hrblock.com\/tax-center\/income\/investments\/undistributed-capital-gains\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Undistributed Capital Gains - Form 2439\" \/>\n<meta property=\"og:description\" content=\"Learn more about IRS Form 2439 and get tax answers at H&amp;R Block.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.hrblock.com\/tax-center\/income\/investments\/undistributed-capital-gains\/\" \/>\n<meta property=\"og:site_name\" content=\"H&amp;R Block\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/hrblock\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/hrblock\" \/>\n<meta property=\"article:published_time\" content=\"2017-06-14T12:00:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-08-29T13:47:21+00:00\" \/>\n<meta name=\"author\" content=\"H&amp;R Block\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@HRBlock\" \/>\n<meta name=\"twitter:site\" content=\"@hrblock\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"H&amp;R Block\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/resource-center.hrblock.com\\\/income\\\/investments\\\/undistributed-capital-gains\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/resource-center.hrblock.com\\\/income\\\/investments\\\/undistributed-capital-gains\\\/\"},\"author\":{\"name\":\"H&amp;R Block\",\"@id\":\"https:\\\/\\\/resource-center.hrblock.com\\\/#\\\/schema\\\/person\\\/0451551be86ad17708cdd08a71391fcf\"},\"headline\":\"Undistributed Capital Gains &#8211; 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