Q. None of the Long Term Gains in a portfolio appear on the PortfolioCenter Income report. Am I doing something wrong? A. You are doing nothing wrong. Schwab Performance Technologies omits Long Term gains from the Income Report by design.
When I called to ask why, the friendly folks at Schwab Performance Technologies in Raleigh told me Long Term Gain are not on the PortfolioCenter Income report because they are taxed differently.
In the United States tax code, Long Term capital gains are taxed at a lower tax rate then Short Term capital gains. Since Long Term capital gains are taxed like realized gains, they can be included on the Realized Gain/loss report in PortfolioCenter.
What do all those terms mean?
Income paid to holders of mutual funds to account for gains due to the sell of assets in the mutual fund is classified as Long-Term if the securities sold were held longer than 12 months and as Short Term if the securities sold were held less than 12 months.