What are examples of taxable dividends and interest?
• From corporations • From investment trusts or mutual funds, including capital gain distributions, whether taken in stock or cash • From stock of banks or savings and loan associations situated outside Tennessee • From distribution of profits among stockholders even though not formally declared a dividend • From holding companies, including those holding banks or insurance companies situated inside or outside Tennessee • From money market funds Interest: • On all bonds issued by any person, firm, church, joint stock company, business trust or corporation • On bonds issued by states, counties, municipalities or political subdivisions outside Tennessee • On bonds issued by foreign governments • On all mortgages or other commercial paper maturing in more than six months from date of issue • On written obligations that state interest is to be paid and mature in more than six months from date of issue (See Nontaxable Interest for exceptions.)
