Investors are likely to rejoice at the estimated $200 billion in capital gains distributions this year—until they get their tax bill, Business Week reports.
That’s likely to be $20 billion.
That’s why
Strong-performing funds, such as small-cap value and natural resource funds, are likely to give the biggest payouts, and about one-quarter of the distributions are expected to be for short-term capital gains, 35% of which are subject to tax. By comparison, long-term capital gains are subject to only a 15% tax.