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
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.
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.
there seems to be three kinds funds under this mutual fund account I opened. so, there are three gross proceeds, cost basis etc listed in the 1099B form. However, one of them (the largest sum) shows nothing in the "cost or other basis" box and said its basis is not reported to IRS.
I did sell all the shares.
I phoned them to sell and basically closed the account. You think I should contact them to find out?
OK ... Look at the 1099-B carefully ... seems like there are long term covered, short term covered and undetermined sales all of which comprise the total sale ... if you are not understanding how this is reported then talk to the broker to get educated.