Are income dividends distributed by bond and money market funds eligible to be taxed at one of the lower federal long-term capital gain tax rates of 15% or 5%?
Distributions of income from bond and money market mutual funds should generally not qualify to be taxed at the lower federal rates. Shareholders of bond and money market mutual funds generally receive distributions from interest earned rather than dividends from stock holdings. Only dividends from stock holdings may qualify to be taxed at the lower tax rates.
Related Questions
- How do I determine which of the dividends reported as qualified dividends on Form 1099–DIV are eligible to be taxed at one of the lower federal long–term capital gain tax rates of 15% or 0%?
- Are income dividends distributed by bond and money market funds eligible to be taxed at one of the lower federal long-term capital gain tax rates of 15% or 5%?
- Are distributions of all corporate dividends taxed at one of the lower federal long-term capital gain tax rates of 15% of 5%?
