Asked by Celeste Machado on Jun 04, 2024
Verified
If the taxpayer has capital gain distributions from a mutual fund and no other capital gain transactions for the year,a Schedule D is not required to be prepared.
Capital Gain Distributions
The payments made to mutual fund shareholders from the fund's sale of stocks or assets, subject to capital gains taxes.
Mutual Fund
An investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, and other assets.
Schedule D
Schedule D is a tax form used to report capital gains or losses from the sale of capital assets, including stocks, bonds, and real estate.
- Understand the tax implications of capital gain distributions and the requirement for filing Schedule D.
Verified Answer
AM
Aashan MeiyappanJun 10, 2024
Final Answer :
True
Explanation :
If the taxpayer has only capital gain distributions from a mutual fund and no other capital gain transactions for the year, it can be reported directly on Form 1040, Line 13. A Schedule D is not required in this case.
Learning Objectives
- Understand the tax implications of capital gain distributions and the requirement for filing Schedule D.