On a 1099-DIV form , the Cap Gain distributions are the capital gains that a Fund you owned, paid out during the year. (ETF's too?)
Mutual Funds that you had bought at some time in the past, do a lot of trading in various securities all during the year, without any involvement on your part. But the IRS expects them to pay out their gains to the owners of that fund every year. Many funds just pay out the year's gains in Nov-Dec every year....but a few funds may payout some $$ a couple times during the year.
The Brokerage or Fund company that holds the shares for you, is required to show the total of all those gains paid out during the year on a 1099-DIV form. Those gains are potentially taxable, even if you automatically re-invested the distribution into the same fund(s).
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Now, if you sell the actual shares of a Fund itself, or or any other security..., those gains (if any) will be shown and reported separately on a form 1099-B/8949.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
