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  1. #1
    Every day a winding road spinnaker's Avatar
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    Any accounting types?

    Any accounting types out there?

    Why do I need to pay capital gains when my account is worth 7% less this year than last? If this horrible slide continues should I expect to not pay capital gains in 2017 for 2016?
    Last edited by spinnaker; 02-11-16 at 08:11 PM.
    "The world is a dangerous place to live, not because of the people who are evil, but because of the people who don't do anything about it."

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  2. #2
    Every day a winding road spinnaker's Avatar
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    Quote Originally Posted by spinnaker View Post
    Any accounting types out there? Apparently I did really well in 2014 on my mutual funds. So well I had to take a distribution to pay the tax man. Paid my capital gains etc. for 2014. Well I got a 1099-B on the distribution and I have even more capital gains listed. If I paid capital gains in 2015 for the 2014 taxes, why do I owe even more? Is it on the amount that the account accrued from the beginning of the year? It was a significant amount. Over $1,400 on a $4K disbursement.

    The other question is why do I need to pay capital gains when my account is worth 7% less this year than last? If this horrible slide continues should I expect to not pay capital gains in 2017 for 2016?


    Anyone? My mutual funds are worth a significant amount less this year than last. Yet I am paying this big tax bill for 2015. Why???
    "The world is a dangerous place to live, not because of the people who are evil, but because of the people who don't do anything about it."

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  3. #3
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    You pay tax on gains when the sale occurs. So if you had gains in a year, you must pay when you do your return. Even if you have big losses, you can't offset the gain tax.
    You're just trying to start an argument to show how smart you are.

  4. #4
    Every day a winding road spinnaker's Avatar
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    Quote Originally Posted by StanSeven View Post
    You pay tax on gains when the sale occurs. So if you had gains in a year, you must pay when you do your return. Even if you have big losses, you can't offset the gain tax.
    That sucks! Though I suppose those taxes paid are figured into the cost basis when selling? So I guess it is pay now or pay later.
    "The world is a dangerous place to live, not because of the people who are evil, but because of the people who don't do anything about it."

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  5. #5
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    Quote Originally Posted by spinnaker View Post
    Anyone? My mutual funds are worth a significant amount less this year than last. Yet I am paying this big tax bill for 2015. Why???
    These sort of funds work better for 401k IRAs.

    Quote Originally Posted by spinnaker View Post
    That sucks! Though I suppose those taxes paid are figured into the cost basis when selling? So I guess it is pay now or pay later.
    The problem is you don't get to choose when things get sold. If they are in a tax deferred account, the activity wouldn't be taxed except for the small amount being distributed. One could transfer the accounts to something with more predictable activity before you have to get distributions (before you retire).
    Last edited by njkayaker; 02-11-16 at 11:09 PM.

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