Mutual fund investors are facing their biggest tax bill since
2000, according to The Wall Street Journal. Despite the overall flatness of the
market, fund investors are being hit with a hefty tax burden this year, mainly
because funds have depleted many of the tax losses they banked during the bear
market.
Investors and advisors should be:
1. Looking
at 2005 realized gains and losses
2. Be
aware of prior year tax-loss carry forwards
3. Check
with current fund holdings of potential year-end capital gain distributions
4. Realize
losses to offset gains
5. Reposition
sold funds in ETFs representing asset classes that were liquidated
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.