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valwp
New Member

I'm in 12% tax bracket, have a joint tenant mutual fund and would like to w/d from the fund and invest in traditional ira for 2018-how would the w/d affect my 2019 taxes?

 
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Accepted Solutions
MichaelL1
Level 15

I'm in 12% tax bracket, have a joint tenant mutual fund and would like to w/d from the fund and invest in traditional ira for 2018-how would the w/d affect my 2019 taxes?

For 2018 return you can enter a Tradtional IRA deduction in the program and see the immediate impact.

For 2019, when you take money from a Mutual Fund you have to redeem shares of it, which is a sale.

To determine gain or loss, you would need to know:

Your cost basis in the mutual fund

When purchased

What is will sell for

Gain or loss

If it is capital gain you may not have any income tax impact in the 12% tax bracket, however first need to know if there is a gain or loss on the sale (redemption).

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9 Replies
valwp
New Member

I'm in 12% tax bracket, have a joint tenant mutual fund and would like to w/d from the fund and invest in traditional ira for 2018-how would the w/d affect my 2019 taxes?

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MichaelL1
Level 15

I'm in 12% tax bracket, have a joint tenant mutual fund and would like to w/d from the fund and invest in traditional ira for 2018-how would the w/d affect my 2019 taxes?

Look at comment below as it might not impact your refund at all.  
MichaelL1
Level 15

I'm in 12% tax bracket, have a joint tenant mutual fund and would like to w/d from the fund and invest in traditional ira for 2018-how would the w/d affect my 2019 taxes?

For 2018 return you can enter a Tradtional IRA deduction in the program and see the immediate impact.

For 2019, when you take money from a Mutual Fund you have to redeem shares of it, which is a sale.

To determine gain or loss, you would need to know:

Your cost basis in the mutual fund

When purchased

What is will sell for

Gain or loss

If it is capital gain you may not have any income tax impact in the 12% tax bracket, however first need to know if there is a gain or loss on the sale (redemption).

valwp
New Member

I'm in 12% tax bracket, have a joint tenant mutual fund and would like to w/d from the fund and invest in traditional ira for 2018-how would the w/d affect my 2019 taxes?

I've never sold any shares of it before. It's an old account, 10 yrs or more. I'd like to set the cost basis as  specific identification if I could identify any exchanges the mutual fund has done, if that makes sense.  Not concerned so much as it costing me in the 12% tax bracket, but it would affect my refund for sure.
MichaelL1
Level 15

I'm in 12% tax bracket, have a joint tenant mutual fund and would like to w/d from the fund and invest in traditional ira for 2018-how would the w/d affect my 2019 taxes?

Capital gains have a very favorable tax rate.  <a rel="nofollow" target="_blank" href="https://www.fool.com/taxes/2017/12/11/long-term-capital-gains-tax-rates-in-2018.aspx">https://www.fo...>
MichaelL1
Level 15

I'm in 12% tax bracket, have a joint tenant mutual fund and would like to w/d from the fund and invest in traditional ira for 2018-how would the w/d affect my 2019 taxes?

If I did not help you or answer what you are asking please post a comment so I can assist.  Thank you.
valwp
New Member

I'm in 12% tax bracket, have a joint tenant mutual fund and would like to w/d from the fund and invest in traditional ira for 2018-how would the w/d affect my 2019 taxes?

I'm confused as to how I can best sell the shares to impact 2019 tax refund less, since I've actually never sold any shares yet. I'm in line to get around $6000 back this year EXCEPT for the fact that my capital gains have basically wiped that out. But you've certainly helped me begin to get a handle on the situation as regards taxes, thank you.
MichaelL1
Level 15

I'm in 12% tax bracket, have a joint tenant mutual fund and would like to w/d from the fund and invest in traditional ira for 2018-how would the w/d affect my 2019 taxes?

Ok first 2018 is done, and you get a big refund, then in 2019 if you are in 12% tax bracket and lets say the Long Term Capital gain $4,000 ($6,000 sales price less $2,000 cost --just an example).  The capital gain gets favorable treatment and it you remain in 12% tax bracket the tax on the $4,000 will be $0, that right $0. Google some articles on Long Term Capital Gain for 2018 or 2019 at tax rates are the same and read them.  
valwp
New Member

I'm in 12% tax bracket, have a joint tenant mutual fund and would like to w/d from the fund and invest in traditional ira for 2018-how would the w/d affect my 2019 taxes?

I am reading on long term capital gains. We'll stay in the 12% tax bracket; however at this point my concern is not to raise my agi too much for next year to keep a bit of a refund -  hopefully by figuring how to sell shares that have less capital gain, if that makes sense, for my 2019 return. thank you
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