I just received a distribution payment from the Fair Fund established by the Securities and Exchange Commission established to compensate investors injured by market timing in Pilgrim Baxter (PBHG) funds during June 1998 to Dec 2001. Does anyone know how to handle taxes on this payment?
I have long since sold all my PBHG funds. At most, I would expect this payment to be equivalent to a long term capital gain as it would have lowered the basis in the funds when I did sell them. I have no idea what tax schedule I should use to report this payment. There is some tax info at
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that implies that if one still owed the mutual fund, one could lower the basis by the amount of the settlement. But there is no info on what to do if the fund had already been sold. Also, I got several checks as I owned several funds, but no indication which check when with which fund. Thanks for any inputs
Nathan Liskov
-- nate snipped-for-privacy@lcs.mit.edu
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