Do I pay taxes on just capital gains or the whole amount withdrawn from a mutual fund?
Asked by: samserio
I recently received a trust. Before my mothers death the entire trust was cash and property. While in the trust the money was put into mutual funds. I now have the mutual funds in a individual account and would like to sale some and receive cash. My account has capital gains. If I withdrawal money do I pay taxes on the entire amount withdrawn or just the capital gain amount for the portion withdrawn?
The trust paid taxes on the accounts while it was there. We simply transferred the accounts to an individual account(with the same investment firm) when I became of age to access it.
My mom died in 2007. The money was in a living trust when she died. The person handling the trust until my brother and i were of age placed most of the money into mutual fund accounts AFTER her death. The trust has been paying taxes on the account each year.