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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: rkral who wrote (60987)	8/9/2002 8:30:36 AM
From: RetiredNow	Read Replies (2) \| Respond to of 77400

If you own a mutual fund, you get the distribution of capital gains, which you have to report on your income statement. For instance, I had to report capital gains from mutual fund distributions in 2000, despite the fact that the net asset value of my funds had decreased measureably. So that's tax #1. Then over the long term, as you start to sell off your mutual funds, which have risen in value over that long term, you have to pay capital gains taxes again on the rise in net asset value. So we pay taxes on the churn of stocks in the mutual fund and pay again on the rise in net asset value on the mutual fund. It's a farce. It's just as shameful as taxation on dividends.