Feeling the Tax Sting


Mutual fund investors were hit hard in 2006, paying the IRS more than $23.8 billion on their reinvested distributions. Equity fund shareholders paid more than 60% ($14.4 billion) of the total tax burden on their capital gains.

Investment companies distributed $418.5 billion last year, surpassing the previous record high of $376.6 billion set in 2000. Short- and long-term distributions from equity funds increased 79% and 86%, respectively, from 2005 levels. Over the last 10 years, investors paid on average 17% to 44% of their load-adjusted returns in taxes.

Source: Lipper’s Taxes in the Mutual Fund Industry—2007, www.lipperweb.com.

SPONSORED REPORT

Tax reform complicates year-end tax planning

Get your clients ready for tax season with these year-end tax planning strategies, which address how to make the most of recent tax law changes, such as the new deduction for qualified business income and the cap on the deductibility of state and local taxes.

VIDEO

What RPA is and how it works

Robotic process automation is like an Excel macro that can work on multiple applications, says Danielle Supkis Cheek, CPA. RPA can complete routine, repetitive tasks such as data entry, freeing up employee time from lower-level chores.