That time of the year. What does ARF think or do about these.....I have a regular mutual fund that just “paid”$12k. That’s gonna hurt.

For taxable funds, anyone do anything to avoid the tax man, legally? I have no losses this year to offset.

No thanks interested in Roth or emergency fund inputs, already handled. Just this specific question please.

Thanks.

Why not reopen the same position now so the gains aren't realized during this year?

If you have any losses, that would require repositioning/rebalancing, sell those to offset gains.

Alternatively, switch to ETF's which are more tax friendly than mutual funds as they do not distribute net capital gains to shareholders the way funds do.... but this likely doesn't help you much because selling the fund would be a net capital gain on any gains in the fund (assuming there are).... if this is a major concern, you'd have to start taking that hit.

double-tap

Well, gains are good, capital gains tax is bad...i think we all agree there.  The thing that is brutal about non-qualified mutual funds is that they are constantly buying and selling so you can get the "gains" without seeing the cash and then you are selling to cover them.  The best thing to do is to look at your taxable investments to find anything that is in the red from when you bought it.  If you have any short term losses, sell that immediately.  If you happen to have long term losses, those can go next.  That helps to reduce your net gain on paper.  If you don't have other non-qualified investments or if you don't have any in the red (good for you).

Are you dropping any money into a retirement account i.e. 401(k) or traditional IRA?  I know you said no ROTH, but that wouldn't help you anyway.

Any chance you own a business?

Because you don't have to sell to have gains in a mutual fund.  When they sell internally the gains are created. He probably didn't sell anything.

No I don’t own a business. I wish.

Correct. I haven’t touched it other than monthly deposits for years.

Generally speaking, I think you are either offsetting with losses, putting money in qualified accounts or buying something that has tax benefits i.e. business assets...or paying the tax.

Someone mentioned ditching the mutual fund for ETF's.  Particularly for large cap exposures, this is a no brainer.  Most LC funds don't outperform the index by enough to justify their fee and you won'thave this problem.  Small caps and international make sense in funds.  Don't buy bond funds in a rising interest rate environment