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Investors & landlords
The classification of long and short term was important only when those amounts were distributed and reported in the years that the distributions occurred. Now you only have to be concerned with the dollar amounts that were reinvested to to arrive at your basis. While last year’s distributions might be short term if not held for more than a year, the effect on your tax liability would probably be trivial. That amount would then be reported on your 1099-B as the purchase price.
March 2, 2021
7:29 AM