With the significant drop in the stock market, I expect that capital gains from mutual funds will be sizable for 2022.
When the market goes down a significant percentage of the population panics and go to cash.
Mutual fund companies only hold so much cash in reserve for redemption’s. Once depleted they need to replenish and keep selling to meet the demands.
This is why I expect a higher percentage of capital gains to occur in 2022. If I am correct tax bills will be increasing. So plan accordingly.