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Phil's Rambling Rants
February 26th, 2009
03:19 pm


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The financial mess

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Date:February 27th, 2009 01:14 am (UTC)
I have never owned either mutual funds or pure stocks outside of a retirement account, but I'm under the strong impression that preferential capital gains rates also benefit mutual fund owners. I remember my mom, in years past, talking about having to do a lot of futzing around to figure out exactly *which* shares she was supposed to be selling when she sold some shares in a mutual fund. If she has to worry about which shares she's selling to find a basis value to subtract from the sale price to determine a gain, that certainly seems to be a capital gain, not regular income.

The biggest tax scam in the stock trading business, which mutual funds certainly do pass on to their holders, is being allowed to offset the gains on one stock with the losses on another.
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