What are the types of mutual fund distributions and how are they taxed?
See below for further information on dividends, short-term capital gains, and long-term capital gains. Dividends are a form of income paid by companies in a portfolio and interest payments on bonds. Two types of income dividends can be paid out: Ordinary dividends are taxed at an investor’s ordinary income tax rate.
Related Questions
- Are there other types of distributions from a mutual fund that may not qualify to be taxed at the lower federal long-term capital gain tax rates of 15% or 5%?
- What are the different types of capital gains distributions made from a mutual fund?
- What are the types of mutual fund distributions and how are they taxed?
