turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
turbotax icon
turbotax icon
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Capital Gains or Ordinary Income

I have about $65 thousand in a Mutual Fund that I have added to over several years with no idea as to how much and when the contributions were made. When I withdraw money from this fund, how is the withdrawal treated- as ordinary income? If as capital gains, how is the cost basis treated as I have no idea when the investments were made?

Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

3 Replies
ColeenD3
Expert Alumni

Capital Gains or Ordinary Income

If you can't identify a basis or the length of time the money was invested, then it defaults to zero basis. It will also default to short term which is taxed as ordinary income. 

 

It would be to your benefit to do some digging to see if you can't come up with some figures to make the sale more advantageous.

Capital Gains or Ordinary Income

certainly the mutual fund company has the records; suggest calling them and asking. 

Capital Gains or Ordinary Income

whatever you original cost, it is increased by the capital gain distributions that you pay tax on every year.

 

See IRS Pub 550 Investment Income and Expenses
page 44 Table 4-1 for a sample table showing
the many years of basis records that you should have been maintaining.
The text in that section describes how to track your basis over time.

Use your Intuit Account to sign in to TurboTax.
By selecting Sign in, you agree to our Terms and acknowledge our Privacy Statement.
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question

Related Content

Manage cookies