Business & farm

Not all mutual fund capital gain distributions are long term Yes, mutual funds typically distribute capital gains that are long term, but from time to time they can issue short term capital gain distributions as well. LTCG and STCG are taxed at different rates, and as you say, STCG is taxed as ordinary income. Are you suggesting that I enter the STCG distribution as something other than a STCG, something that is taxed at the ordinary income rate? What would you suggest I claim it as - interest, dividends? How is that going to jibe with 1099s sent to the IRS showing it was STCG? It's hard to believe that having me mis-report the data is the best solution that TurboTax has to offer here. Can you clarify? Most helpful would be if somebody could identify a form and  line where I should enter this info (somewhere on Schedule D, lines 1-6?).

 

Thanks