Undistributed capital gains are reported to mutual fund shareholders when the mutual fund retains some of its long-term capital gains and pays taxes on the undistributed amounts. The taxpayer treats their share of these gains as distributions, even though they did not actually receive them. However, the distributions are not reported on Form 1099-DIV, but Form 2439.
Where do I enter Form 2439?
To report your undistributed long-term capital gains, please follow the steps below.
- Federal
- Payments & Estimates
- Other Payments or Refundable Credits
- Shareholders Undistributed Long-Term Capital Gains - Form 2439