Thursday, November 17, 2005

Tax for mutual fund

Some special rules:
1. To qualify for the qualified dividend (taxed at same rate as long term captical gain), the fund must be held for at least 61 days.
2. Upon selling of a fund held not more than 6 months, part of short term capital loss (if there's any) must be treated as long term captital loss to the limit of long term captital gain distributions.

A good guide is at

At the same site, tax information for other investment can also be found.

Tuesday, November 15, 2005

Notes on Yahoo finance historical prices

The adj close is the actual close multiplied by split multiplier and dividend multiplier
See following page for explanation.

IMPORTANT NOTE: Historical dividend is also adjusted by split multiplier and dividend multiplier

CSV file for historical price can be retrieved by (SPY as example)

HTML page for historical price

Wednesday, November 02, 2005

Can people short in an IRA account?

The answer is NO.
Reason (adapt from
The restriction comes from the combination of the following three facts. First, the law governing IRAs says that if any part of an IRA is used as collateral, the entire IRA is considered distributed and thus subject to income tax and penalties. Second, the rules imposed by the Federal Reserve Board et al. say that short sales have to take place in a margin account. Third and finally, margin accounts require that you pledge the account as collateral. So if you try to turn an IRA into a margin account, you'll void the IRA; but without a margin account, you can't sell short.