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IFSE Institute CIFC Exam - Topic 11 Question 23 Discussion

Which of the following statements about capital gains distributions from mutual fund trusts is correct?
D) Capital gains distributions from a mutual fund trust are reported annually on a T3.
A) Capital gains from mutual fund distributions are 100% taxable.
B) Capital gains distributions are not a disposition and are therefore not taxable.
C) Capital gains from mutual fund trusts are deferred until the investor exits the mutual fund.

IFSE Institute CIFC Exam - Topic 11 Question 23 Discussion

Actual exam question for IFSE Institute's CIFC exam
Question #: 23
Topic #: 11
[All CIFC Questions]

Which of the following statements about capital gains distributions from mutual fund trusts is correct?

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Suggested Answer: D

by Gene at Jul 16, 2026, 02:24 PM

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Norah
25 days ago
D makes sense too. Gains are usually taxable, right?
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Terrilyn
1 month ago
Agreed! A is misleading. You can't defer them like that.
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Jani
1 month ago
I think B is correct. T3 forms report those gains annually.
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Esteban
1 month ago
I thought capital gains were deferred until you sell?
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Eladia
2 months ago
D is definitely true, all gains are taxable.
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Grover
2 months ago
Wait, are you sure about C? That sounds off.
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Trinidad
2 months ago
Totally agree, B is the right answer!
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Jesusita
2 months ago
B is correct, they report on a T3.
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Corrinne
2 months ago
I practiced a similar question, and I think B is definitely the best choice since it mentions the T3 form.
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Johnetta
2 months ago
I recall something about distributions not being a disposition, so C could be a tricky option.
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Valene
3 months ago
I'm not entirely sure, but I feel like capital gains from mutual funds are taxable, which might make D the right answer.
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Ligia
3 months ago
I think I remember that capital gains distributions are reported on a T3, so maybe B is correct?
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