With the average U.S. mutual fund down 33% for the year and large capital gains distributions looming in December, today’s Wall Street Journal urges those owning mutual fund in non-retirement accounts to sell in order to be able to take the losses (fully against capital gains and up to $3,000 against ordinary income) on their 2008 returns and to avoid tax on the year-end capital gains distributions that funds must make by year-end.  Moreover, anyone thinking of bottom-fishing and buying mutual fund shares in a taxable account should wait until after the taxable distributions are made.  Tom Herman, Fund Investors Face Risk of Tax Hit Despite Losses; Many Managers Are Planning Capital-Gains Distributions Before the End of This Year