Question
Can I track my mutual funds within GainsKeeper?
Answer
You can track your mutual funds within your GainsKeeper account and you can record fractional shares out to four decimal places. GainsKeeper provides investors with the ability to record their mutual fund sell activity by FIFO First in, first out (FIFO) is the default method used when selling securities by brokerages, the IRS and GainsKeeper. FIFO sells your oldest lots first. (default), Average Cost A costing method by which the value of a pool of assets or expenses is assumed to be equal to the average cost of the assets or expenses in the pool. and Specific ID This method enables you to specify which shares you are selling in order to reduce realized capital gains.. Currently, GainsKeeper will not automatically adjust your Schedule D for the two IRS rules below. Therefore, you will need to manually adjust your Schedule D if these rules apply to you. IRS Publication 564, Mutual Fund Distributions, provides instructions on reporting these adjustments on the Schedule D.
If you sell shares from a tax-exempt bond fund at a loss, held them for six months or less, and you received exempt-interest dividends on those shares, your loss is disallowed to the extent of the exempt-interest dividends received.
If you sell fund shares at a loss that you held for six months or less and you received capital gain distributions on those shares, any capital loss you realized on selling those shares must be treated as long-term capital loss to the extent of the capital gain distributions received.