The National Directory of Certified Public Accountants

Ask A CPA - Investments & Financial Planning

I Invested In A Mutual Fund On Dec 12 And Now Found Out I Have Substantial Taxable Gains In That Fund Even Though At The End Of The Year The Fund Was Worth About What I Paid For It. How Could That Be?

You probably bought the fund before its capital gain distribution. When you buy a fund before its capital gain distribution, you can end up owing money on your own money. Always buy after the distribution. Please contact a CPA in your community to avoid making these costly mistakes again.

If you need professional help with "Investments & Financial Planning" or have other tax questions, we can help you find a local licensed CPA for a free, no-obligation consultation.