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Load charge on Mutual Funds
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Not A Clue
Dec 6, 2023, 1:10:29 PM12/6/23
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Some mutual funds have x% load charge on purchase and sale.
If I buy a mutual fund, say $10K with a 2% load charge, the mutual fund company gets $9,800. What is my cost basis -- 10K? Or 9,800?
And when I sell, is the load charge a deduction from the sales proceeds -- like a sales commission?
TIA
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If I buy a mutual fund, say $10K with a 2% load charge, the mutual fund company gets $9,800. What is my cost basis -- 10K? Or 9,800?
And when I sell, is the load charge a deduction from the sales proceeds -- like a sales commission?
TIA
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
ira smilovitz
Dec 6, 2023, 2:40:59 PM12/6/23
to
On Wednesday, December 6, 2023 at 1:10:29 PM UTC-5, Not A Clue wrote:
> Some mutual funds have x% load charge on purchase and sale.
>
> If I buy a mutual fund, say $10K with a 2% load charge, the mutual fund company gets $9,800. What is my cost basis -- 10K? Or 9,800?
>
> And when I sell, is the load charge a deduction from the sales proceeds -- like a sales commission?
>
> TIA
>
> --
Load charges are treated the same as commissions. Your cost basis includes the front end charge you paid. Your sales proceeds are measured after any back end fee.
> Some mutual funds have x% load charge on purchase and sale.
>
> If I buy a mutual fund, say $10K with a 2% load charge, the mutual fund company gets $9,800. What is my cost basis -- 10K? Or 9,800?
>
> And when I sell, is the load charge a deduction from the sales proceeds -- like a sales commission?
>
> TIA
>
> --
Ira Smilovitz, EA
Leonia, NJ
Not A Clue
Dec 14, 2023, 2:24:02 PM12/14/23
to
On Wednesday, December 6, 2023 at 2:40:59 PM UTC-5, ira smilovitz wrote:
> On Wednesday, December 6, 2023 at 1:10:29 PM UTC-5, Not A Clue wrote:
> > Some mutual funds have x% load charge on purchase and sale.
> >
> > If I buy a mutual fund, say $10K with a 2% load charge, the mutual fund company gets $9,800. What is my cost basis -- 10K? Or 9,800?
> >
> > And when I sell, is the load charge a deduction from the sales proceeds -- like a sales commission?
> >
> > TIA
> >
> > --
> Load charges are treated the same as commissions. Your cost basis includes the front end charge you paid. Your sales proceeds are measured after any back end fee.
>
> Ira Smilovitz, EA
> Leonia, NJ
> --
Thanks for the Reply.
> On Wednesday, December 6, 2023 at 1:10:29 PM UTC-5, Not A Clue wrote:
> > Some mutual funds have x% load charge on purchase and sale.
> >
> > If I buy a mutual fund, say $10K with a 2% load charge, the mutual fund company gets $9,800. What is my cost basis -- 10K? Or 9,800?
> >
> > And when I sell, is the load charge a deduction from the sales proceeds -- like a sales commission?
> >
> > TIA
> >
> > --
> Load charges are treated the same as commissions. Your cost basis includes the front end charge you paid. Your sales proceeds are measured after any back end fee.
>
> Ira Smilovitz, EA
> Leonia, NJ
> --
I checked Subscribe when I posted the original question. I didn't get a copy of this reply in my Inbox. This is not the first time that this happens. Does the Subscribe checkbox not work anymore?
So I tried to Forward this Reply to myself. And all I get is a blank email. How can I get a copy of this reply onto my PC? I also used to be able to click on "Show Original Message" and import it into my email client. That option is now grayed out.
Why is it so cumbersome now to get a copy of the message ?
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