Tax consideration on mutual fund withdrawal.?

I'm reading that the funds withdrawn from a mutual fund are taxed as income. Do I have to pay income on the total amount withdrawn? Or can I reduce that by the cost of the investment, like I do when figuring the profit of a stock transaction? I'm keeping track of the base cost and the average cost per share. Am I wasting my time?

No you are not wasting your time because you can deduct the cost basis of your mutual fund investment for tax basis. you will be taxed on the amount above your cost basis.

it is like a stock transaction -- even goes in same place on schedule D.

the one bit is that if any fund payouts (dividends, or cap gains) are reported on a 1099 form and taxed, BUT then used to buy more units, they have to be added to your total cost [every year] to determine your basis in all the units.

It depends on whether you used pre-tax or after-tax money to purchase the investment.

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　　Investment Account 　　Invest Money 　　Invest in Gold 　　Invest Fund 　　Income Fund 　　HYIP 　　High Yield 　　Hedge Fund

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