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Jun 2, 2023 · Use this form to report the amount of undistributed long-term capital gains to shareholders of a RIC or a REIT. Learn about the current revision, recent developments, and related forms and instructions on how to file Form 2439.
- About Form 2438, Undistributed Capital Gains Tax Return - IRS
Information about Form 2438, Undistributed Capital Gains Tax...
- For calendar year 20 Form 2439 - Internal Revenue Service
Form 2439 (Rev. November 2021) Cat. No. 11858E. Notice to...
- About Form 2438, Undistributed Capital Gains Tax Return - IRS
- What Is Form 2439: Notice to Shareholder of Undistributed Long-Term Capital Gains?
- Understanding Form 2439: Notice to Shareholder of Undistributed Long-Term Capital Gains
- Advantages and Disadvantages of Form 2439: Notice to Shareholder of Undistributed Long-Term Capital Gains
Form 2439 is an Internal Revenue Service (IRS) form that
(RICs)–mutuals funds and exchange-traded funds–and
(REITs) are required to distribute to shareholders in order to report undistributed long-term capital gains. Mutual funds are required to distribute most capital gains to shareholders, and the shareholders report these gains on Form 1099-DIV. However, if the fund company decides to retain these gains, it must pay taxes on behalf of shareholders and report these transactions on Form 2439.
Form 2439 is an IRS form that Regulated Investment Companies (RICs)–mutuals funds and exchange-traded funds–and Real Estate Investment Trusts (REITs) are required to distribute to shareholders in order to report undistributed long-term capital gains.
Form 2439 is produced by the
(IRS) for use by RICs and REITs to inform shareholders of long-term
that it has not distributed to its investors. This retention of capital gains is relatively rare. Regulations require fund companies to disburse almost all gains to investors in a transaction known as a capital gains distribution. Funds tend to accumulate capital gains in the months of November and December, but can generally warn investors with an estimate in advance. This is particularly true of actively-managed funds, which conduct more trades within their portfolios.
tend to contain more static portfolios and thus produce fewer and more predictable capital gains.
Investors whose shares are held in tax-free accounts, such as an
(IRA), may file a Form 990-T to claim a tax refund on the taxes paid by the fund company. Shareholders subject to federal taxation must also adjust the
The net result of a capital gains allocation is essentially no different to the shareholder than a capital gains distribution. In distribution, the investor who receives a capital gains dividend in cash pays taxes on that gain, then reinvests the remainder in new shares, which should create very similar results to the investor who receives a Form 2439 from the fund.
One potential difference between a capital gains allocation and a capital gains distribution is that, because it falls into a higher income bracket, the fund company likely pays a higher tax rate on the gains that it retains, while the individual may be subject to a lower rate. By reporting the dollar amount paid by the fund company on their individual Form 1040, the shareholder may benefit from the discrepancy between the fund company’s tax rate and their own.
Learn how to report undistributed capital gains on Form 2439, a notice from the mutual fund company that shows the tax-free or taxed gains and the tax rate. Find out how to claim a credit for the taxes paid and increase the basis of your mutual fund shares.
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Dec 15, 2023 · Learn what Form 2439 is, why it matters, and how to report undistributed long-term capital gains from mutual funds and REITs. This comprehensive guide covers the purpose, process, and tax implications of Form 2439, with examples and expert insights.
Sep 22, 2023 · Learn how to read and report IRS Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains, from RICs and REITs. Find out the tax information, reporting obligations, and shareholder instructions for this form.
Mar 15, 2024 · Form 2439, a mandatory IRS document, acts as a conduit of information for RICs and REITs to disclose undistributed long-term capital gains to shareholders. While standard practice involves mutual funds distributing capital gains, Form 2439 comes into play when fund companies opt to retain these gains, necessitating tax payments on behalf of ...
