indeedFlorida Mortgage Rates
If Obama ( a multimillionaire) and Warren Buffett (a superbillionaire) and all the rest of the super wealthy liberals think that the governemt isn't taking enough of their money, they are free to VOLUNTARILY GIVE MORE to the gov't. But no, they REFUSE to voluntarily give the gov't their money!
The super rich libs will supposedly only give more money to the gov't if they are FORCED to (by higher taxes).
But it's worse than that. Typical of these hypocritical and dangerous idiots, most of these super wealthy libs will NOT be affected by the tax increases they keep advocating, since they keep a large part of their money in tax-free bonds, trust funds, real estate that they never sell, etc.
Libs keep repeating that raising taxes will result in increased revenue to the gov't., in spite of solid proof that the OPPOSITE occurs.
Raising taxes results in LESS revenue to the gov't, lowering taxes results in MORE revenue to the gov't - a look at past figures shows this clearly!
But the liberal media helps to cover up this fraud, so the public has a hard time figuring out what the truth is.
Their talk about only 'taxing the rich' is nonsense. For example, they tried to 'tax the rich' by putting a huge 'luxury tax' on super-expensive yachts years ago, so the rich just stopped buying the yachts and thousands of poor working stiffs who made the boats ended up losing their jobs. 'Taxing the rich' always ends up hurting the poor.
This country was made great by people investing in companies that could then make products, provide jobs, etc etc. People take a big risk when they invest money in companies, they can lose it all sometimes, and they shouldn't be taxed on it if it works out. We ALL benefit from their investments.
The problem of budget deficits and huge national debt can NOT be solved by raising taxes. The gov't will just increase their spending to ever higher levels.
Our major economic problems can ONLY be solved by CUTTING GOVERNMENT SPENDING. Good luck at ever getting that done!
ninasgrammaCheck Equifax score free
Your second description of how the gain(loss) is handled is correct.
Every year when your mutual fund issued the dividends, you received a 1099DIV from the mutual fund. You had to pay income taxes on those dividends, even though they were reinvested. Those taxes are already paid.
In 2007 your mutual fund also issued a dividend, and again you will receive a 1099DIV showing those dividends. You will pay income taxes in 2007 on those dividends. If they are qualified dividends your tax rate will be at most 15%. Other dividends will be taxed as ordinary income. The 1099DIV will show the ordinary dividends and the qualified dividends.
Now for the sale of the mutual fund.
1. Your short-term gain (or loss):
Sales Price: The value of the shares purchased with the 2007 dividends
Basis: The 2007 dividends
2. Your long-term gain (or loss):
Sales Price: Total Sales Price minus the value of the shares purchased with the 2007 dividends
Basis: Your original investment plus all of the reinvested dividends through 2006. You can get this basis from your 2006 mutual fund statement.
Date of purchase: Put the date of the 2006 dividend reinvestment. Don't put "various" because that will cause the entire sale to be short-term.
Your 1099B will only show the totals. Make sure the short-term and long-term gains (losses) reconcile with the 1099B. You can figure your short-term gain, then use the 1099B to get the numbers for your long-term gain.
the tax lady308 Ferrari
You didn't ask it this way, but it always seems to come up.
Let's say you are single and your taxable income without long term capital gains is $30,000. That puts you in the 15% tax bracket. That tax bracket currently has a 0% LTCG rate. So you sell some stock and have a LTCG of $10,000 thinking you will owe $0 on it. Not true. The first $4000 is at 0% (because $30,000 + $4000 still fits in the 15% tax bracket for 2010), but the next $6000 is at 15% because it's in the next tax bracket (25% for ordinary income and 15% for LTCG).