1099-DIV showing capital gains after a transfer from one broker to another

[Xarax]

So, T Rowe Price rep says the large amount listed in Box 2A is from internal management of the fund and not due to the transfer.  That is one heck of a tax bill they created for me.

[TomD8]

@Xarax --

People do sometimes get caught by surprise by large capital gain distributions.  One suggestion: check your mutual funds' websites in late fall every year and you should be able to see if a capital gain distribution is coming.  Those distributions are usually made late in the year, November or December.

[fanfare]

Did you reinvest your capital gain distribution?

That amount is added to your cost basis..

Then you will not be taxed twice on that money.

You will be taxed on the future gains attributable to that money ( a lot of investors don't understand this part).

See IRS Pub 550 for how to do this correctly.

[LenaKA]

Hi, If the check from T Rowe was sent to you and then you sent it to Schwaub then T Rowe has to send the 1099Div as they don't know the rest of the story.  Even with that, you should be able to post the 1099div and then show that the funds have been reinvested.  I'm not sure if it is with the posting of that dividend information or in the credit section of the return.  This would zero out the tax liability for those funds.  There is a time limit from the time of distribution to the reinvestment, but it's like 60 days, approximately.

Hope this helps.