Do I report no income because it was an exchange?

Received 1099B. I had traded one mutual fund to another in the same family. $9,000 went from one fund to the new fund. So why do I have to report $9,000 as income? I didn't make any money. I exchanged it. I didn't sell it.

You actually did sell one to buy another. You created a taxable event. Even though its in the same family, you need to report the sale on schedule D.

The whole $9000 is not income... Your income is the sale price less your purchase price of that fund.

Your tax adviser is the one you need to talk to. I suspect that you received the 1099B because technically you sold the first fund and purchased the second fund with the proceeds of the first sale. The 1099B should have more than one block completed. Your initial purchase price of fund one should show. Your profit probably isn't the entire $9000.

Unless you are rolling funds from one IRA fund into another, taxes are usually due.

You are under the mistaken impression that buying and selling MF shares creates a capital gain like stock shares. That is not true. There is no "taxable event" created. Capital gains and dividends earned by MFs are distributed annually to shareholders by the fund manager.

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