HR 168 Mutual Fund Distributions

I heard about HR 168 and HR 300 which are law going before Congress and
the House that would allow a mutual fund holder to avoid any tax
liabilities due to distributions and capital gains until he sells the
fund. In other words, as long as you keep rolling over the capital
gains / distributions in the same fund, you wont pay any taxes until
you actually sell the shares. Any word on the status of this plan and
if it will pass?

Thanks
Pat

Re: HR 168 Mutual Fund Distributions

komobu wrote:
> I heard about HR 168 and HR 300 which are law going before Congress and
> the House that would allow a mutual fund holder to avoid any tax
> liabilities due to distributions and capital gains until he sells the
> fund. In other words, as long as you keep rolling over the capital
> gains / distributions in the same fund, you wont pay any taxes until
> you actually sell the shares. Any word on the status of this plan and
> if it will pass?
>

With our budget deficit, the Congress needs all the taxes it can get
its hands on.


> Thanks
> Pat

Re: HR 168 Mutual Fund Distributions

"PeterL" <> wrote

> With our budget deficit, the Congress needs all the taxes it can get
> its hands on.

What they really need to do is stop growing it. Between Katrina, Iraq, and
Pakistan is costing us far too much.

Re: HR 168 Mutual Fund Distributions

Ed wrote:
> "PeterL" <> wrote
>
> > With our budget deficit, the Congress needs all the taxes it can get
> > its hands on.
>
> What they really need to do is stop growing it. Between Katrina, Iraq, and
> Pakistan is costing us far too much.

What's so sad is the supposed fiscally conservative Republicans turn
out to be no better than the Democrats in terms of pork projects.

Re: HR 168 Mutual Fund Distributions

komobu wrote:
>
> I heard about HR 168 and HR 300 which are law going before Congress and
> the House that would allow a mutual fund holder to avoid any tax
> liabilities due to distributions and capital gains until he sells the
> fund. In other words, as long as you keep rolling over the capital
> gains / distributions in the same fund, you wont pay any taxes until
> you actually sell the shares. Any word on the status of this plan and
> if it will pass?
>
> Thanks
> Pat

Old news. Rep. Saxton proposes these bills every couple of years; the
bills you mention are actually from the first session of the 107th
Congress (2001). See, e.g.


A newer bill that he proposed was HR 496, in the first session of the
108th Congress (2003). His latest proposal is HR 196, in the first
session of the 109th Congress (2005). Get with the program :-).

That information alone should be enough to tell you what the prospects
of passage are. (Slim and none.)

If you do a search on Saxton and "mutual funds", you'll find a lot of
information on this. If you do a search on Saxton in Google groups,
misc.invest.mutual-funds, you'll find a number of threads already
discussing this.

HR 300 (2001) limited the deferral amount to $5K ($10K for married
filing jointly), adjusted for inflation since 1999, and HR 168
(2001)similarly limited the amount, but to just $3K.




--
Mark Freeland