Fund Investments – Mutual Funds
If you decide to have your money invested in mutual funds, you may take into consideration the tax income you may pay for the transactions made inside the fund.
The mutual funds has a fund manager, a professional, who trades the fund’s investments in accordance with the fund’s investment objective. The disadvantage here, is that each time a transaction takes place, buying shares from one fund and selling in another fund, you have to report each one of these transactions on your tax return. Usually the calculations of gain or loss are made by the fund company you elected.
Exchange Traded Funds
If you are looking to lower your expenses while managing fund investments, you may consider investing in exchange traded funds. Usually the shares are issued and redeemed by institutional investors in large blocks, approx. 50,000. ETFs don’t redeem shares or issue new shares depending on the buying or selling of individual investors, as it happens within traditional funds.
Furthermore, you do not have to report gains or losses for each buying or selling transaction incurred inside the fund.
We deal with the IRS everyday and know the steps that are needed to resolve your tax problem. Make sure you do the smart thing and hire professional representation to ensure you get the best resolution in place. With over 30 years of experience in this business, Joe Mastriano PC has the knowledge and passion to represent you. Visit our website by clicking the link below or speak to someone NOW, at (713)774-4467.
