When filling in the tax box on the right for Mutual Funds, the following guidance and definitions will be helpful. Remember to get this tax box, the “MF?” box on the left must be checked. This means the existing money plus any new payments will be taxed like a mutual fund. To fill in the box, you’ll use 3 percentages that must equal 100%, for example, 20% + 30% + 50%.
Unrealized Long Term Capital Gains means the percent of the funds’ growth that “fell off the fund managers desk” or were truely held from beginning to end and consequently receive deferred growth.
Realized Dividends & L. T. C. G. (Long Term Capital Gain) means the percent of the funds’ growth that were paid as dividends and (according to current 2010 tax law) recieved LTCG taxation AND/OR growth paid as LTCG, meaning it was held for longer than one year and then sold.
Realized Short Term Capital Gains means the percent of the funds’ growth that were sold prior to being held for 12 months.