The "estimated 2006 capital gains distribution" for a mutual fund of mine lists both short-term and long-term gains. But, their 2005 1099 just listed "total" cap gains, which also seems to be what TaxCut 2005 expected. Googling around, it looks like short-term gains really are supposed to be taxed as ordinary income, which sounds vaguely familiar, but leaves me fairly befuddled.
- Did I screw up my 2005 taxes?
- Is something different for 2006?
- Something else?
Thanks, George
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Short-term capital gains realized by the fund aren't reported separately on the 1099 and are not included in the cap gains amount. What they report as cap gains on the 1099 is what you report on your return as long-term gains.
-- Phil Marti Clarksburg, MD
Short term capital gains are normally included in the ordinary dividends amount. They are not qualified dividends. This type of 1099 reporting can cause issues with fiduciary accounting where short term gains need to be segregated. ___________________________________
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