IRS Publication 564: Mutual Fund Distributions

AAA

DEFINITION of 'IRS Publication 564: Mutual Fund Distributions'

A document published by the Internal Revenue Service (IRS) that provides information on the tax treatment of mutual funds and money market funds. IRS Publication 564 outlines how filers are to report distributions from dividends (both reinvested and ordinary), how to track the cost basis for mutual fund shares and how to identify which shares are sold, and how to report gains and losses when shares are sold or exchanged.

INVESTOPEDIA EXPLAINS 'IRS Publication 564: Mutual Fund Distributions'

Distributions received from a mutual fund can include an ordinary dividend, capital gain, qualified dividend or a exempt-interest dividend. Rules in IRS Publication 564 do not apply to mutual funds held in a qualified retirement plan, such as 401(k), or an Individual Retirement Account (IRA). Dividends and mutual fund shares in retirement accounts typically grow tax-free until distributions begin.

RELATED TERMS
  1. IRS Publication 590: Individual ...

    A document published by the Internal Revenue Service (IRS) that ...
  2. Distribution

    1. When trading volume is higher than that of the previous day ...
  3. Capital Gain

    1. An increase in the value of a capital asset (investment or ...
  4. Form 1099-DIV

    A form sent to investors by investment fund companies. The form ...
  5. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  6. 1040 Form

    The standard Internal Revenue Service (IRS) form that individuals ...
Related Articles
  1. Budgeting

    Managing Income During Retirement

    Learn some sensible strategies for making your hard-earned savings last for as long as you need them.
  2. Retirement

    An Overview Of Retirement Plan RMDs

    Make your deadlines for required minimum distributions and save more of your nest egg.
  3. Taxes

    Avoiding IRS Penalties On Your IRA Assets

    The best way to avoid additional charges and taxes is to know which transactions have expensive consequences.
  4. Investing Basics

    How Dividends Work For Investors

    Find out how a company can put its profits directly into your hands.
  5. Taxes

    Unexpected 1099-R Form: What To Do

    Did your IRA custodian report distributions you thought were non-reportable? Find out what went wrong.
  6. Economics

    EU Probes Tax Laws To Catch Corporate Cheaters

    Recently, the EU has launched an investigation into tax deals between Amazon and the country of Luxembourg.
  7. Economics

    The Economic and Social Effects of Corruption

    Corruption results in inefficiencies in the operations of emerging economies, and prevents such economies from reaching the maximum level of development.
  8. Investing Basics

    Five Successful Investing Strategies

    The secret to investing is that there is no secret. Success is all about knowing yourself, getting the basics and using both to make the right choices.
  9. Investing Basics

    What is the difference between a REIT and a real estate fund?

    A real estate fund invests in securities offered by public real estate properties directly or indirectly through Real Estate Investment Trusts (REITs).
  10. Economics

    Can state and local governments in the US run fiscal deficits?

    Discover why most state and local governments do not – or cannot – run fiscal deficits in the same manner as the U.S. federal government.

You May Also Like

Hot Definitions
  1. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  2. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  3. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  4. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
  5. Key Performance Indicators - KPI

    A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their ...
  6. Bank Guarantee

    A guarantee from a lending institution ensuring that the liabilities of a debtor will be met. In other words, if the debtor ...
Trading Center