@tomvat wrote:
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?
Yes.
A capital gain is any income received from selling a security at a higher price than purchased. Mutual funds can pay both interest earned, and/or capital gains when the fund sells the securities that it holds.
Basically "unearned" income is any income not earned from working (with a few exceptions).
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
