How do LT vs. ST mutual fund capital gains get seperated via the 1099-Div

[Treasur2]

How do LT vs. ST mutual fund capital gain distributions, get separated via the 1099-div. I'm looking at my 2019 1099-div from my mutual fund company. I notice they lump them all together in box 2a. How does TT know how much is LT vs. ST? Another words, the fund company separates them on its website, yet reports them all in box 2a, which does not contain a differentiation or breakdown.

My understanding is I can report these capital gain distributions on my schedule B, then yes, I know it flows to my schedule d in fact. But how does the software know how much is ST vs. LT. if the fund company itself is not breaking it apart. Unless.........the ST distributions are part of the "non-qualified".....dividends?? Is that how its done?

[Critter-3]

Look again ... long term and short term should be listed separately as well as the covered and non covered sales ...   if you need more help to read the reporting forms ask the broker to explain them to you.  

[VolvoGirl]

There should be backup detail pages listing all the sales from the broker.  Look for sections A, B, E etc.  Sometimes there will be 1 sales transaction for shares bought at different times.  So you may have to split that Sale into 2 sales, one for the long term shares and a sale for the short term shares (bought less than 1 year ago).

[Treasur2]

My error. I mean 1099-Div

[Hal_Al · Accepted solution]

Q. Unless.........the ST distributions are part of the "non-qualified".....dividends?? Is that how its done?

A. Yes.

Box 2a of the 1099-Div shows only your long term capital gain distributions (LTCGD).  Short term capital gain distributions (STCGD) are included in box 1a with ordinary dividends.  STCGD are not shown separately on the 1099-Div.  They may be shown on supplemental paper work by the mutual fund company, but that's not relevant.   LTCGD are taxed the same as actual Long term gains from the sale of stocks, mutual fuds and other securities.. LTCGD are reported on line 13 of Schedule D (note: they're call capital gain distributions, not long term capital gain distributions; but that's what they are).

STCGD are not treated as short term capital gains on the tax return.  They're taxed as ordinary dividends (not qualified dividends).

"My understanding is I can report these capital gain distributions on my schedule B".

No. Capital gains distributions (they're long term) are reported directly on Sch D (line 13).  Ordinary dividends from box 1a (including any STCGD) are reported directly on Sch B; but as dividends, not STCG.

"Yes, I know it flows to my schedule D".  No,  nothing on schedule B flows to Sch D.

[fanfare]

"How do LT vs. ST mutual fund capital gains get seperated via the 1099-Div"

if on a 1099-DIV, they go to Schedule D automatically and are all of the same duration.

otherwise, different durations are reported on 1099-B.

[Anonymous]

you can have 2 types of STCG from having a mutual fund. if you hold the shares ST and sell them then you have a short-term capital gain/loss.  if it's the mutual fund owning the stock and it sells short-term that comes thru as a non-qualified dividend if it's a gain.  a loss can not be distributed but is used by the fund to offset future gains it has. 

[Hal_Al]

The mutual fund co. will issue you a form 1099-B when you sell mutual fund shares.  The 1099-B will indicate if the sale is ST or LT.  The sale of shares of the fund, by you, is not reported on form 1099-DIV.