PDA

View Full Version : How to report capital gain from a long term investment


Graeton82
Mar 9, 2009, 02:56 PM
I bought say 100,000 dollar worth of mutual funds(several) from a investment company in 1997. Since then, I rolled the moneys through several companies and last year, I sold off all of them. The values went ups and downs with more moneys in and more moneys out.

If I total all the investment moneys and subtract all the cashouts, it leaves me 14000 dollar capital gain.

Now the tax is killing me. What cost can I deduct from this gain? Other than Commissions, how about all the dividend income taxes I have already paid when I never cashed any money out but penalyzed for the sellings that my investment company did. I want to deduct those taxes too!

Thanks for all your help.

ebaines
Mar 10, 2009, 12:13 PM
When you "rolled the moneys through several companies" you mean that you continued holding shares of the original funds, but transferred the account from one investment house to another - is that correct? If so, then you are correct that your cost basis is the sum of all the costs you incurred to buy the shares, including any commissions that you may have been separately charged to purchase the shares. If you had any automatic reinvestment of income distributions or capital gains distributions over the years they would be added to your cost basis as well. But to answer your question directly - no, you may not deduct the income tax you paid on dividends or other distributions over the years.