45 Oa) Ob) Oc) A mutual fund corporation distributes a capital gain to its shareholders. How is the distribution taxed i

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45 Oa Ob Oc A Mutual Fund Corporation Distributes A Capital Gain To Its Shareholders How Is The Distribution Taxed I 1 (21.42 KiB) Viewed 109 times

45 Oa) Ob) Oc) A mutual fund corporation distributes a capital gain to its shareholders. How is the distribution taxed in the hands of the shareholders? It is taxed as a dividend, subject to gross-up and the dividend tax credit. The full amount of the capital gain is taxed at the shareholder's marginal tax rate. 50% of the capital gain is taxed at the shareholder's marginal tax rate. Distributions of capital gains by a mutual fund corporation are not taxable. Od)