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Article: Mutual fund investors, prepare to pay Uncle Sam.(Knight Ridder Newspapers)
- Article from:
- Knight Ridder/Tribune News Service
- Article date:
- November 13, 2000
- Author:
CopyrightCOPYRIGHT 2000 Knight-Ridder/Tribune News Service. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Mutual funds will be mailing out some awfully big checks next month. And some of the folks on the receiving end will be in tears.
These won't be joyful tears. They will be painful, tax-induced tears.
Mutual funds are about to make their year-end distributions of gains and income. The payouts can be a real hurt to investors who own their fund shares in taxable investment accounts.
The tax man will demand his cut of that check. And it won't matter whether the investor automatically invests the payout right back into the same fund.
The tax man demands his cut even if you didn't hang on to some of that distribution to pay the taxes.
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