Tax & EvaluationCâu 98 / 110
Which cost basis method applies to mutual fund shares if the shareholder makes no election?
a.Average cost, single category
b.Specific identification of the highest-cost shares
c.First in, first out
d.Last in, first out
Giải thích
Absent an election, the IRS default for securities including mutual fund shares is first in, first out, which sells the oldest shares first. Shareholders may instead identify specific shares at the time of sale or, for fund shares, elect an average cost method through the fund. LIFO is not an available basis method for these shares.
Trích dẫn luật: Internal Revenue CodeLuyện miễn phí toàn bộ 110 câu hỏi — không cần đăng ký.
Câu hỏi liên quan cùng chủ đề
- A fund makes a distribution characterized as a return of capital. The immediate effect on the shareholder is:
- An investor automatically reinvests $3,000 of taxable fund distributions over several years. The effect on cost basis is that basis:
- An investor sells fund shares at a $4,000 loss on March 10 and buys shares of the same fund on March 25. The result is:
- An investor exchanges shares of a growth fund for shares of a bond fund within the same fund family at net asset value. For tax purposes, this exchange is:
- A shareholder of a municipal bond fund receives $900 of income distributions and a $500 capital gains distribution. The federal tax treatment is:
- Withdrawals of earnings from a non-qualified annuity before annuitization are taxed:
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