Irs Publication 564 - Mutual Fund Distributions - 2003 Page 12
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19of Form 1040 and the qualified dividends on
Robert and Janice enter the $61 capital gain
complete columns (c) and (d). Their sales price
line 9b.
distribution from Mutual Fund R (from box 2a of
in column (d) (the gross proceeds shown in box
Robert and Janice bought this stock in
Form 1099 – DIV) on line 13, column (f). They
2 of Form 1099 – B) is $3,200 ($16 per share).
1989 for $10.29 per share.
enter the $31 post-May 5 capital gain distribu-
They enter their gain of $1,204 in column (f).
tion (from box 2b of Form 1099 – DIV) in column
They also enter it in column (g) because they
Mutual Fund Record. Robert and Janice
(g) of line 13.
sold the shares after May 5.
keep track of all their basis adjustments on their
They enter the $30 qualified 5-year gain
Robert and Janice add the amounts in col-
Mutual Fund Record, shown later. They show
(from box 2c of Form 1099 – DIV) on line 5 of the
umn (f) of lines 8 and 13 and enter their net
the return of capital distributions and the undis-
Qualified 5-Year Gain Worksheet in the instruc-
long-term capital gain of $1,265 on line 16. They
tributed capital gains from Mutual Fund S and
tions for Schedule D. This is their only qualified
also enter that amount on line 17. They add the
the reinvested dividends from Mutual Fund R.
5-year gain, so they also enter $30 on lines 6
amounts in column (g) of lines 8 and 13 and
They do not show the exempt-interest dividends
and 8 of the worksheet and on line 35 of Sched-
from Mutual Fund X because those dividends do
enter the result, $1,235, on lines 15 and 17b.
ule D.
not change their basis in the shares.
Because lines 16 and 17 are gains, they com-
They report the sale of their shares in Mutual
The Martins keep this record with their mu-
pute their tax using Part IV of Schedule D. They
Fund S on line 8 because they owned the shares
tual fund documents, and they use it to report
enter their qualified dividends of $470 ($250
for more than 1 year. They use the information
their 2003 sale of Mutual Fund S.
from Mutual Fund R and $220 from Green Pub-
from their Mutual Fund Record to complete col-
lishing Co.) on line 23 of Part IV. (Part IV is
Preparing Schedule D. The Martins use their
umns (a), (b), and (e). After adjustment for their
shown, but not filled in, except line 23 for quali-
Form 1099 – B and their Mutual Fund Record to
return of capital distributions and their undistrib-
fied dividends and line 35 for qualified 5-year
figure the gain from the sale of Mutual Fund S to
uted capital gains, their basis is $1,996 ($9.98
report on Schedule D.
per share). They use their Form 1099 – B to
gain.)
Table 5. Mutual Fund Record for Robert and Janice Martin
1
Acquired
Sold or Redeemed
Adjusted
2
Number
Cost
Number
Mutual Fund
Adjustment to Basis Per Share
Basis Per
Date
of
Per
Date
of
Share
Shares
Share
Shares
12-31-91
12-31-92
12-31-00
12-31-01
8-31-02
MUTUAL FUND S
7-12-89
200
10.00
9.98
10-8-03
200
(.05)
(.02)
(.04)
.03
.06
MUTUAL FUND X
4-19-01
87.54
29.70
MUTUAL FUND R
6-6-03
153.16
24.81
12-26-03
13.03
25.01
1
Include share received from reinvestment of distributions.
2
Cost plus or minus adjustments.
Page 12
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