So I want to take any profit and use it on a down payment. Will this work for the like investment clause or anything like it?
2007-08-30 10:17:09 · 7 answers · asked by anna s 1 in Business & Finance ➔ Taxes ➔ United States
Nope, not even close. Basically, if you sell a stock (which a mutual fund is) you have capital gain, which can only be offset by stock losses.
While I do agree with GITWITIT that you should not always take the answers given here at face value, I can assure you 100% that any CPA where you live would give you the same answer I have given.
Only way to lessen or eliminate capital gains taxes from selling a mutual fund at a profit is to sell some stocks/mutual funds at losses. If you do this and wind up with net losses you can deduct up to $3,000 per year ($1,500 if married filing separately) against other income. Any excess above the $3,000 in net losses would be carried forward to be used in future years.
2007-08-30 10:44:56 · answer #1 · answered by Anonymous · 0⤊ 0⤋
No - and even if you bought a different mutual fund with the money, you'd still have to pay tax on the sale from the first fund. There isn't a "like investment" clause for personal items, although for business property sometimes an exchange can be done that defers taxes. If you are thinking of a wash sale, where you sell a stock and buy back the same stock within 30 days, that only affects losses, not gains. And if you are thinking of the rule about deferring taxes on a house sale if you reinvested the proceeds in another house, that rule has been gone for a couple decades.
2007-08-30 19:38:49 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
No, there is no investment clause for individuals. You have to pay the taxes on the profit.
2007-08-30 21:21:28 · answer #3 · answered by MukatA 6 · 0⤊ 0⤋
No. That is not a "like-kind" exchange.
You will have to pay taxes on the gains in the mutual fund if you sell it.
2007-08-30 17:39:46 · answer #4 · answered by Wayne Z 7 · 1⤊ 1⤋
No, there is no way to avoid the capital gains tax outside of a tax deferred product like an IRA, ROTH or an annuity.
I hope that this helps.
2007-08-30 17:30:58 · answer #5 · answered by RunningUte 3 · 0⤊ 2⤋
Your question requires an answer from a professional adviser qualified to answer. DO NOT take any advice from anyone else!!!!
2007-08-30 17:47:45 · answer #6 · answered by GITWITIT 4 · 0⤊ 2⤋
No
2007-08-30 18:26:43 · answer #7 · answered by shipwreck 7 · 1⤊ 0⤋