Submitted By: someone
Answered: January 5, 2020 10:11 pm

If I move money from one mutual fund to another, is this taxable?

If you change investments from one mutual fund to another within a taxable account, then it’s as if you sold your holdings in one account to buy holdings in another. If there is a gain on the transaction, you must report it as capital gain, which may be short term or long term, depending on how long you held the shares. If you stay within the same fund family, you may avoid investment charges, but you won’t avoid taxes.

Tax Glossary

Net operating loss

A business loss that exceeds current income may be carried back against income of prior years and carried forward as a deduction from future income until eliminated.

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