long-term capital loss

Forum|Forum|5 years ago
June 24, 2020
1 reply
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I opened a mutual fund with $5,000 many years ago. By the end of 2018 its value dropped to about $3290. When I sold it in Aug 2019 it valued around $4,335. So it seems like I had some capital gain in the year of 2019. However, I actually lost money since the initial investment of this mutual fund. How can I claim any of the loss as a long term capital loss? Thank you

Critter

Level 15

On the 1099-B from the broker the sale will be listed ... bought $5000 - sold $4335 = loss $665 period ... it is just that simple. What happened to the value while you owned it is immaterial.

VolvoGirl

Level 15

And you should have been reporting any dividends each year. If the dividends were reinvested and bought more shares be sure to add all the purchases to the cost. A reinvested dividend is really 2 transactions. A Dividend and then a Buy. So you might even have a bigger loss.