Your clients probably have a lot of questions when they receive their year-end statements and tax documents. Our Tax Center can help you provide the answers they need.
Favorable tax rates for long-term capital gains have been extended through 2010. For individuals in tax brackets higher than 15%, long-term capital gains are taxed at 15%. For those in the 10% or 15% tax brackets, the long-term capital gains tax rate is 0%.
You may want to remind clients that funds with a long-term investment strategy accumulate gains over time. That’s why capital gains distributions can be high in a year with negative returns and low or nonexistent in a year with positive returns.
Other Tax Matters
- Tax-free and municipal fund information—helps assess the tax-exempt status of dividends from municipal investments, as well as any short- and long-term capital gain distributions.
- U.S. Government Obligation information—helps determine what portion of ordinary dividends derived from interest earned on U.S. Government securities may be tax exempt.
- Foreign Tax Credit Letter—explains whether shareholders of Calvert International Equity Fund qualify for foreign tax credits or deductions.
Is your client getting a tax refund? If so, remind them that they can have their refund deposited directly into their Calvert funds account by completing and submitting IRS Form 8888 with their tax return.