Choose wisely. There is only one correct answer to each question.
0%
Keep studying!
Review your answers below to learn more.
1.
An exchange of shares from one mutual fund to another in a fund family is a taxable event, except in the case of _______.
Qualified retirement plans. Exchanges made within qualified retirement plans are tax-exempt.
2.
When is the worst time to buy a fund, from a tax standpoint?
Right before a fund makes a distribution. If you buy a fund just before it makes a distribution, you'll pay taxes on that distribution, even though you haven't enjoyed any of the appreciation that led to that distribution.
3.
Which of the following are not taxed?
Capital losses. They are not income.
4.
Which IRS tax form shows the proceeds of mutual fund share sales?
1099-B. This form reports the sales of shares.
5.
The _______ is what you earn when you sell mutual fund shares at a profit.
Capital gain. The other two are earned when the fund, not you, makes a profit.
