Hello,
Fidelity is reporting mutual fund yearly distribution on 1099-div (2a) field - its asking me to treat it as long term capital gains for taxes.
Does this mean can I use this to write off some of the losses from my personal stock investments? Or capital gains reported in 1099-div (2a) are handled differently.
Thanks
Sudheer
yes. capital gain distributions reported on 2a of 1099-div flow to line 13 of schedule D so they can be offset by capital losses. it will be offset by other net long-term losses first and if you end up with overall net long-term losses they can be used to offset net short-term gains. you can deduct up to $3,000 of net capital losses against other income. any excess gets carried forward to 2023. Turbotax will do all the calculations automatically.
yes. capital gain distributions reported on 2a of 1099-div flow to line 13 of schedule D so they can be offset by capital losses. it will be offset by other net long-term losses first and if you end up with overall net long-term losses they can be used to offset net short-term gains. you can deduct up to $3,000 of net capital losses against other income. any excess gets carried forward to 2023. Turbotax will do all the calculations automatically.