Question

Sylvia owns 100 shares of Maxima Growth mutual fund. In December she received a check for $50, payment of ordinary income dividend distributions and capital gains distributions. Sylvia also noticed in her daily newspaper listings that Maxima Growth is now worth $2 per share more than what she purchased it for at the beginning of the year. How much will Sylvia's holdings in Maxima Growth add to her taxable income for the year assuming she decides not to sell the fund this year

Answer 1

It will cost Sylvia $50 in taxes because of her investment in Maxima Growth. This is further explained below.

How much will Sylvia's holdings in Maxima Growth add to her taxable income for the year assuming she decides not to sell the fund this year?

Generally, A person's or a company's taxable income is the amount of their total income that is utilized in the calculation of their tax liability.

In conclusion, The amount Sylvia's holdings in Maxima Growth will add to her taxable income is $50

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