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Joanne V asked:


We will have income from IRA and Social Security and know now what those amounts will be. We have investments that are currently losing money, but who knows what the year-end will look like. We will also be able to itemize due to mortgage interest, property taxes.
I have filled out the Est Tax Worksheet and we wouldn’t owe any taxes because of Itemizing. So, do we still have to file est.?

tc asked:


Many mutual funds have very recently paid out year-end distributions. For example, let’s say I own a fund worth $1000 that distributes 10%, or $100. The investment is still worth $1000 even though the fund shares have declined in price by 10%, but if you’re in the 25% tax bracket, and the distribution is short-term capital gains and income, then I have another $25 to pay in income taxes due solely to the distribution. In other words, if you figure the effect of the income taxes, the net has just declined from $1000 to $975.

I realize my concern goes away if the account is in an IRA, but this question is specific to a non-IRA or non-Roth account. So then, what is the sense of holdlng mutual fund investments in taxable accounts?

Thankyou.