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Tax Law (Questions About Taxes)/selling shares in a mutual fund


Hello, John!

I want to sell some shares in a mutual fund. I know that I will be paying taxes when selling.

How do I determine how much tax I owe?
Is there an IRS publication that provides the details on how to calculate what I would owe?
Or is there a better place to get an answer?

Thanks for your help.



Thanks for your question.

You will receive a 1099-B form from your broker or mutual fund company. This will indicate the sale proceeds and your cost basis. Enter these items on Form 8949, and carry it over to Schedule D of the 1040. If the shares were held for more than 12 months, the gain will be subject to the capital gains rate, which can vary from zero to 23.8%. If not, it would be taxed at ordinary rates. The rate in either case depends on your total taxable income.

Hope this helps.

John Stancil, CPA

Tax Law (Questions About Taxes)

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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