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To: RetiredNow who wrote (60995)	8/9/2002 3:07:09 PM
From: rkral	Respond to of 77400

OT...mindmeld, re double taxation ... ...you get taxed 1) on the $20 distribution and 2) on the change in net asset value of $210. That's double taxation. The profit was $230. The tax should be on $230 .. which it is .. $20 plus $210. The same profit was not taxed twice .. therefore, there is no double taxation. To clarify, if I directly owned the same exact basket of stock that the mutual fund owned, the only taxes I'd pay would be on the sales of stock throughout the year. In other words, I'd only pay taxes on the same $20 as above...and that's it. You are not comparing apples and apples here. The additional $210 came about when the fund shares were sold. You didn't sell the stock in your example. The comparable situation is buy stock at $100 .. sell stock at $330 .. pay taxes on profit of $230. Same result as for the fund .. ignoring the expenses, of course. Ron P.S. Definition: BULL MARKET -- A random market movement causing an investor to mistake himself for a financial genius. <gg>