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jgordosea
jgordosea, Enrolled Agent
Category: Capital Gains and Losses
Satisfied Customers: 3159
Experience:  As an Enrolled Agent you can be ensured of my competence in income tax matters.
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I invested $250,000 in aoppenheimer ny muni bond fund i lost

Customer Question

I invested $250,000 in aoppenheimer ny muni bond fund i lost $20,000 on it IF I withraw half do i have to pay taxes
Submitted: 1 year ago.
Category: Capital Gains and Losses
Expert:  jgordosea replied 1 year ago.
Greetings,
Presumably we are not taking these funds out of a retirement account (401K, SEP or IRA, etc.) but from a regular investment account.
If you sell shares in the fund for less than your cost you will not have any income tax due on that sale.
For example, if I bought 250K worth of the fund (all at once) and it is now only worth 230K when I take out 115K my cost for those shares was 125K and I would show a 10K loss.
Sometimes when I bought shares over several months or years my cost of some of those shares could be less than the current price and it is possible to have a gain, and tax due, depending on which of my shares I sell.
For example, say I bought 100 shares for 100K (1000 per share) and later bought 100 shares for 150K (1500 per share)for 250K total invested. If the sale price was 1150 per share (my 200 shares are now worth 230K) depending on which lot I sell will determine if I have a gain or a loss.
So long as the fund company is confirming that you will be selling shares that are at a loss, then there is no tax to pay.
Please ask if you need more information or clarification.
Thank you.

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