The Capital Gains Blog

Archive for the ‘Capital Gains Distributions’ Category

Question: Can I use realized capital losses to offset Capital Gains Distributions from mutual funds?

I thought the answer was yes, but Turbo Tax doesn’t seem to want to let me. I’m pretty sure you can’t use losses to offset dividends though, right?

Answer: YES YOU CAN
capital gains distributions are not dividends

the distributions go on line 13 of schedule D
Your losses also go on sch D

you are right that capital losses can’t be used to offset dividends (directly), but an overall loss, up to $3000 will reduce your total taxable income

I don’t know what the deal is with
Turbo tax – it should work

Franklin Street Properties Corp. Announces Tax Composition of 2009 Distributions

WAKEFIELD, MA–(Marketwire – January 19, 2010) – Franklin Street Properties Corp. (“FSP”) ( NYSE Amex : FSP ), an investment firm specializing in real estate, announced today the tax composition of its 2009 distributions. Shareholders are encouraged to consult with their personal tax advisors as to their specific tax treatment of FSP distributions. Ticker Symbol: FSP Common Stock (CUSIP …

(pt5) Power and Efficiency Gains by Deploying 415V in N. American Data Centers

Question: Why does a mutual fund’s NAV fall when it distributes dividends/capital gains?

I have chosen to reinvest my dividends, but how come the NAV does not go up? For example if I recieved $1,000 in distributions how come the NAV does not go up, since I would technically be purchasing more shares? Doesn’t the price go up when more money is invested in the fund? How is it different than if I invested $1,000 of my own money?
Thanks.

Answer: Take it in steps….NAV is called the Net Asset Value of the fund. If the Fund has 100 shares and all of the underlying investments in the funds are worth 1000 dollars then the NAV is $10. Now if the fund is required to pay out capital gains/dividends of $50. Then the fund is now worth $950 and the 100 shares have a NAV of $9.50. Now, if you reinvest that dividend/capital gain (not everyone does) then you buy back shares at that $9.50. The $50 is able to buy back 5.263 shares. Now the fund is again worth $1000 but there are 105.2632 shares. NAV remains at $9.50 but the overall value of the funds is that $1,000. If you follow the trail you can see that you didn’t really lose any money…the share value dropped but your shares increased the same ratio. Any difference between that price is the normal NAV fluctuation for that day.

Clough Global Equity Fund Increases Quarterly Cash Distribution by 11% to $0.29 Per Share

DENVER—-Today, the Clough Global Equity Fund declared that it has increased its quarterly distribution by $0.03 per common share to $0.29 per common share starting in January 2010.

Question: very complicated tax situation?

my wife’s mother has held mutual fund stock for my wife for the last 5 years or so. Do we have to report the capital gains and what not reported from these mutual funds? On this form 1099 statement, it reports ordinary and qualified dividends, and Capital Gain Distributions along with foreign tax paid. (the mother is labled as the customer, and it is for her daughter…(my wife)) do i have to claim this stuff.. why are taxes such a clusterF***?
yes.. i know the details, its customer “mom smith for daughter differentlastname”

Answer: if the mother is the primary on the account then she is supposed to claim the gains and losses, etc.

Pioneer Investments Declares Monthly Distributions for Closed-End Funds

BOSTON—-Pioneer Investments today announced the declaration of dividends for four closed-end funds for January 2010. The closing market price, annualized market price distribution rate, NAV, and NAV distribution rate are based on data as of December 31, 2009.

Trust distribution minutes after Bamford

First Trust Advisors L.P. Announces Zero Capital Gains Distributions in 2009 for all 40 Exchange-Traded Funds

WHEATON, Ill.—-First Trust Advisors L.P. announced today that none of the 40 exchange-traded funds advised by FTA is distributing capital gains in 2009.

Mr & Mrs Bamford’s Booty – Family Trust update

Neuberger Berman High Yield Strategies Fund Announces Monthly Distribution

NEW YORK—-The Board of Trustees of Neuberger Berman High Yield Strategies Fund has declared a monthly distribution of $0.085 per share. The distribution announced today is payable on January 29, 2010, has a record date of January 15, 2010 and an ex-date of January 13, 2010.