3 Mutual Fund
Tax Hazards to Watch Out For
in mutual funds is an easy way to diversify a portfolio, which
is one reason why they're commonly found in retirement plans
such as IRAs and 401(k)s.
But if you hold such funds in
taxable accounts, or are considering such investments, beware
of these three tax hazards:
Mutual funds with high turnover rates can create income that's
taxed at ordinary-income rates. Choosing funds that provide
primarily long-term gains can save you more tax dollars
because of the lower long-term rates.
on mutual funds are typically reinvested, and unless you keep
track of these additions and increase your basis accordingly,
you may report more gain than required when you sell the fund.
(Since 2012, brokerage firms have been required to track - and
report to the IRS - your cost basis in mutual funds acquired
during the tax year.)
Buying equity mutual fund shares late in the year can be
costly tax-wise. Such funds often declare a large capital
gains distribution at year end, which is a taxable event. If
you own the shares on the distribution's record date, you'll
be taxed on the full distribution amount even if it includes
significant gains realized by the fund before you owned the
shares. And you'll pay tax on those gains in the current year
- even if you reinvest the distribution.
If your mutual fund investments aren't limited to your
tax-advantaged retirement accounts, watch out for these
hazards. And contact us - we can help you safely navigate them
to keep your tax liability to a minimum. Call us at
SMEED CPA Adds Financial
Services To Help Clients With
Investments & Insurance
often we here at SMEED CPA are asked about financial issues
that impact our clients investments and their portfolios.
We always offered our opinion and suggestions but in order to
help our clients actually execute the changes we suggest,
SMEED has created a Financial Services division.
SMEED Financial Services, Inc. will be able to
work with both individual and business clients on their
investment portfolios and manage assets on their behalf.
SMEED Financial will include Michael Uadiale,
ACA, CPA, CGMA; and Pablo Blanco who has
recently joined SMEED and comes with over 18 years of
financial sales and advising experience with affluent
Watch your inbox and mail boxes for more specific information
on services SMEED Financial Services, Inc will make available
Would You Give Me Your
Feedback & Testimonial
on Our Hotline?
Hello it’s Michael Uadiale, CPA of
SMEED CPA Inc. We’ve just installed a toll-free
number that I would like for you to call and tell me how you
think we are doing as your CPA firm.
Just dial 800-609-9006
extension 3638 and follow the instructions. If we’ve
done a good job please let me know. And if we can
improve on anything, please mention that too.
Us Be Found on
Also as we expand our business,
we find more and more people are using
YELP and Google
to look for us by searching Brentwood accountant or
When they do this we want to
be FOUND on GOOGLE. One way you can help us
is to give us an
ONLINE REVIEW on our Google Maps/Places listing --->
or on our YELP local listing
click here to go to our Google Listing for SMEED CPA and
click on the
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Scroll down to the Review area.
On either site it may say: Been here?
Rate and review
You will click on the Rate and
review link and then log in, then
give us a review!
You can choose between 1 and 5
STARS and write in what you think about the tax or accounting
work we have done for you.
It's that simple. Thank
you in advance for your help and cooperation!
As always you can call our offices if you have any
questions about these or any other accounting related issues, at
Regards, Michael Uadiale, CPA,
Managing Partner, SMEED CPA,