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Regardless of whether or not the transaction is taking place in the same account or with the same financial institution, you are basically selling one mutual fund and buying another. Therefore any capital gain or loss on the sale of the first mututal fund is taxable in the year the sale is made. If you have held the stock mutual fund for one year or more, any capital gains would be taxed at the long term capital gains tax rate which is currently capped at 15%.
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