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May 22, 2024 · Use this form to provide shareholders of a regulated investment company (RIC) or a real estate investment trust (REIT) the amount of undistributed long-term capital gains.
- About Form 2438, Undistributed Capital Gains Tax Return
Information about Form 2438, Undistributed Capital Gains Tax...
- For calendar year 20 Form 2439 - Internal Revenue Service
Reporting Information. Complete Copies A, B, C, and D for...
- About Form 2438, Undistributed Capital Gains Tax Return
Reporting Information. Complete Copies A, B, C, and D for each shareholder for whom the regulated investment company (RIC) or real estate investment trust (REIT) paid tax on undistributed capital gains under section 852(b)(3)(D) or 857(b)(3)(C).
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Mar 17, 2023 · To enter Form 2439 go to "Investment Income" and select "Undistributed Capital Gains" or you can search for "Form 2439" in the top right corner of your screen and select "jump to" that section.
- 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.
Dec 25, 2023 · Form 2439 is an important tax document that notifies shareholders of undistributed long-term capital gains. These gains originate from regulated investment companies (RICs) and real estate investment trusts (REITs) that the shareholder has invested in.
Undistributed Capital Gains – Form 2439. A mutual fund usually distributes all its capital gains to its shareholders. The mutual fund company reports these gains on Form 1099-DIV. However, a mutual fund might keep some of its capital gains and pay a tax on them.
People also ask
What is form 2439?
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Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains is the form required to be issued by regulated investment companies (RICs) and real estate investment trusts (REITs) when there have been undistributed long-term capital gains.
