Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10.2 9/18/84; site bonnie.UUCP Path: utzoo!watmath!clyde!bonnie!wjh From: wjh@bonnie.UUCP (Bill Hery) Newsgroups: net.invest Subject: Re: Mutual fund taxation Message-ID: <612@bonnie.UUCP> Date: Thu, 7-Nov-85 22:55:28 EST Article-I.D.: bonnie.612 Posted: Thu Nov 7 22:55:28 1985 Date-Received: Fri, 8-Nov-85 22:11:09 EST References: <1599@uwmacc.UUCP> Organization: AT&T Bell Laboratories, Whippany NJ Lines: 13 > .........................................................Is it > really true that stock market mutual fund earnings do not qualify > for the $200 (?) dividend deduction? In a common stock the earnings the mutual fund had will be in qualifying dividends (regular dividends), long term capital gains, short term capital gains, and non-qualifying dividends (e.g., from interest). They should report to you your pro rata share of these categories, and you report them to the IRS as such. Thus, the qualifying dividend portion can be excluded up to the $200 limit, and the l.t. capital gains taxed at the lower rate. This is based on my experience with a few funds and myown reading of IRS and other publications. I've had no problems reporting to IRS this way.