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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

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Valene
1 day 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
6 days ago
I think I remember that capital gains distributions are reported on a T3, so maybe B is correct?
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