The distribution is being reported on Form 1099-Div on Line 1a. Details for the distribution note that it is a short term gain. However it is being reported on Line 1a as though it was an ordinary non-qualified dividend. I called broker and they said this is the only way they can report it even though it is clearly stated to be a short term gain. I have a short term loss from commodity trading that I want to use to offset this gain....but it appears I cannot use the short term commodity loss to offset the short term gain distribution from the mutual fund distribution unless you can figure out a way to do it.
