I sold some of my stock last year, and purchased 2 mutual funds within the year. I was recently told that I?

Question

could avoid or put off paying capital gains until I sell my mutual funds. Is there a way to do this?

Answer 1

All capital gains are taxed for the year sold or cashed in, in the case of a mutual fund.

Nobody pays tax on accrued income or accrued interest or dividends.

Answer 2

No, you were told wrong. You'd pay the tax on the profit from the stock sale, then the money you invested in the mutual funds will form the start of your basis for when you sell those fund shares.

Answer 3

Publicly traded stocks and mutual funds do not qualify for the tax free exchange rules of section 1031. Sorry, you were told wrong.

Answer 4

shares or inventory money must be offered, via a beginner with a 10 3 hundred and sixty 5 days time horizon. Absolute minimum must be argued to be 5 years... yet that must be very unwise. And right this is yet another theory.... if shares "drop"... how far? In 2008 if you bought whilst shares have been down 15%.... you have lost 35% via 3/2009. How do you be attentive to whilst to purchase in?????? you do no longer. shares (for many persons) are very long term investments.

Answer 5

Will not be able to defer capital gains tax.If you bought a commodity at Xdollars and sold same for Xdollars plus.Then plus is a capital gain.If you reinvest the proceeds,it does'nt negate the capital gains tax

Answer 6

No. Whoever told you that was thinking of like-kind exchange rules, which don't apply to securities. The sale of the stock is a taxable event, even if you used the proceeds to purchase other securities.