Tax Center

Yes. The value of reinvested dividends and distributions will be included on Form 1099-DIV and must be reported on your tax return. The shares you receive on the reinvestment are treated as newly purchased shares.

Capital gain distributions from a mutual fund are distributions of the net capital gains derived from sales of securities within the Fund. As a result, they can occur in a Fund even in a period when the Fund’s total return is low or negative. To comply with IRS requirements, the Dodge & Cox Funds normally distribute net capital gains annually. When a Fund sells an individual security, the Fund tracks the difference between the selling price and cost basis to determine the gain or loss produced by the sale. At the end of each tax year, the Fund accumulates the gains and losses for all securities sold by the Fund during the year and any loss carryforward from prior years. If the net amount is positive, the Fund will make a capital gain distribution to shareholders.

Yes. If you sell (redeem or exchange) shares in your Fund account, the gain or loss on that sale must be reported to the IRS on your tax return. By early February, you will receive Form 1099-B, which reports the proceeds you received from your sale. This information is reported to the IRS.

Yes. For tax purposes, an exchange is considered a sale of shares of one Fund and the purchase of shares of another. The gain or loss on the shares you sell in the exchange transaction must be reported on your tax return. By early February, you’ll receive Form 1099-B, which reports the proceeds you received from your sale.

Your gain or loss is determined by comparing the amount you realize from the sale (sales proceeds) against the cost basis of the shares sold.

Generally, cost basis is the original amount you paid for shares in your Fund account, including the value of reinvested dividends and capital gains. The IRS requires mutual fund companies to report the cost basis of Fund shares that were acquired after January 1, 2012 (covered shares). If you have covered shares, you may elect a cost basis method for your account from several available methods. Dodge & Cox Funds will report the cost basis information to you and to the IRS on Form 1099-B following the year in which a sale of covered shares occurs. For more information on available cost bases methods, please click on the Cost Basis link at the top of this page.

For shares acquired prior to January 1, 2012 (non-covered shares), only Average Cost basis reporting can be provided by the Fund. For most regular taxable Fund accounts opened after November 1987, Dodge & Cox Funds have been tracking and reporting cost basis information using the Average Cost method. This information is reported to you on Form 1099-B and is not reported to the IRS. If you choose to use a method other than the Average Cost method for non-covered Fund shares, you are responsible for keeping those records. 

Short-term capital gains are gains on securities held one year or less. They’re generally taxed at the same rates as ordinary income. Short-term capital gain distributions from the Fund are reported as ordinary income on your Form 1099-DIV.

Long-term capital gains are gains on securities held more than one year. They’re generally taxed at a maximum federal rate of 15% or 20%, depending on your level of taxable income.

Yes. Your year-end balance, which appears on the year-end account statement sent to you in early January, is reported to the IRS.

Yes. Form 5498, which is sent to you in May, reports your total IRA contributions attributed to the previous tax year. This information is reported to the IRS.

Yes. Form 5498 is sent to you in May showing rollover amounts received into your Dodge & Cox Funds IRA during the previous year. This information is reported to the IRS.

No. Assets exchanged between Dodge & Cox Funds within your IRA aren’t taxable. The transaction is not reported to the IRS.

No. In general, as long as the investment remains in an IRA or other qualified retirement account, and the rollover was properly completed within 60 days, the rollover proceeds aren’t taxable. According to federal tax law, you’re allowed one IRA-to-IRA rollover within a one-year period (365 days). By early February, you’ll receive Form 1099-R, which reports the amount of the withdrawal from your Dodge & Cox Funds IRA. This information is reported to the IRS. The custodian of the IRA which received the rollover should report the receipt on Form 5498 in May following the year of receipt.

No. In general, a direct transfer from one IRA custodian to another IRA custodian isn’t taxable.

Yes. By early February, you’ll receive Form 1099-R, which reports the amount of your distributions from your Dodge & Cox Funds IRA. This information is reported to the IRS.

Yes. A Roth IRA conversion is considered to be a distribution from your traditional IRA and a contribution by way of conversion to a Roth IRA. By early February, you will receive a Form 1099-R that reports the amount converted from the traditional IRA. In May, you'll receive a Form 5498 reporting the amount converted to your Roth IRA. This information is reported to the IRS. In general, the amount of the conversion must be recognized as taxable income.