Thank you. Another thing that confuses me is the IRS's definition of unearned income:
Unearned Income
Unearned income includes investment-type income such as taxable interest, ordinary dividends, and capital gain distributions.
It also includes unemployment compensation, taxable social security benefits, pensions, annuities, cancellation of debt, and distributions of unearned income from a trust.
This information is found in the Filing Information chapter of Publication 17, Your Federal Income Tax.
I thought capital gains distributions are what a mutual fund pays, not the result of a stock transaction resulting in a gain. Are capital gains from a stock exchange/sale and capital gains distributions considered the same thing by the IRS?
