Capital Gain Distribution

Capital Gain Distribution may have one of the following meanings, depending the context of the term:

1. Mutual funds. Distributions received by mutual funds earned as capital gains retain that character when passed on to the mutual fund's investors. 2. Corporate liquidation. The difference between the fair market value of property distributed to a shareholder in excess of the shareholder's basis in his or her stock is a capital gain or capital loss.

See also Capital Gain in the American Legal Encyclopedia and Capital Gain in the World Legal Encyclopedia.

Capital Gain is a gain on the sale of capital asset. See Capital Gains Tax and Capital Gains Tax.

Description and Definition of Capital Gain Distribution

A mutual fund dividend allocated to gains realized on the sale of fund portfolio assets. Distributions resulting from the sale of capital assets by a mutual fund. Report the dividend as a long-term capital gain even if you held the fund shares short term.

Resources

See Also

Further Reading

• Capital Gain Distribution in the West's Tax Law Dictionary
• Capital Gain Distribution in “A Dictionary of Taxation”