Churning
Barbara, that's because it's NOT in your client's best interest for her account to be run this way. Some people can make a feeble argument for "day trading" individual stocks, but not mutual funds, especially if there are frontend/backend loads.
I believe each of these trades on the 1099-B must be reported. This means having to dig out not only the purchase cost but also the dividends taxed to comprise the basis for each fund traded.
Sea-Tax, since you're in the investment business, are you familiar with any arrangement such as this one where these dozens of transfers are done commission-free to the client?
Barbara, that's because it's NOT in your client's best interest for her account to be run this way. Some people can make a feeble argument for "day trading" individual stocks, but not mutual funds, especially if there are frontend/backend loads.
I believe each of these trades on the 1099-B must be reported. This means having to dig out not only the purchase cost but also the dividends taxed to comprise the basis for each fund traded.
Sea-Tax, since you're in the investment business, are you familiar with any arrangement such as this one where these dozens of transfers are done commission-free to the client?
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