Tax & Evaluation第 93 / 110 题

An investor bought fund shares four months ago and now receives a capital gains distribution from the fund. How is that distribution taxed?

a.As a short-term gain, because the investor held the shares less than one year
b.As ordinary income, because all fund distributions are ordinary income
c.As a long-term capital gain, regardless of how long the investor held the shares
d.It is not taxable until the shares are sold

解析

Capital gains distributions passed through by a fund are always reported as long-term because the fund's own holding period governs, not the shareholder's. The shareholder's holding period matters only when the shareholder sells the fund shares. Distributions are taxable in the year received even if automatically reinvested.

法律依据: Internal Revenue Code

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