Is a mutual fund exchange in the same fund family a taxable event?

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Is a mutual fund exchange in the same fund family a taxable event?

2006-07-18 05:42:18 · 1 answers · asked by Jerome Brown 1 in Business & Finance ➔ Taxes ➔ United States

1 answers

Yes, unless the exchange takes place in a tax-sheltered account like an IRA.

The IRS views the exchange as the sale of one shares in one fund and the purchase of shares in another. The fact that they are in the same fund family is irrelevant.

2006-07-18 06:21:27 · answer #1 · answered by VinTek 7 · 2⤊ 0⤋