Yes, since you are actually selling one fund and purchasing a new fund. You need to report the sale of the shares you sold on Form 8949, Sales and Dispositions of Capital Assets. Information you report on this form gets posted to Form 1040 Schedule D. You are liable for Capital Gains Tax on any profit from the sale. The fact that you reinvested the proceeds in another mutual fund has no bearing on your tax liability for this sale.
Articles in this section
- How does selling your home for a profit affect the income you report and your tax liability?
- I am married and our house when sold will net about $400,000 in profit. We have lived here for 30 years. If I die before the house is sold, does my spouse lose the $250,000 exemption for me?
- If I sell shares in a mutual fund and reinvest the proceeds in another fund from the same fund family, do I have to pay tax on any gain?
- Last year I had some capital losses that exceeded the $3,000 maximum allowed. How do I get to use the remaining losses?
- I invested in a company, and now all my shares are worthless. Can I carry the loss forward to coming years, or must I claim the loss this year?