It's at the fund level. Other funds' assets don't affect the taxability of the distribution of a specific fund.I also realize now that, it does not matter just at the fund level but the total net interest matters too. This is even crazier to calculate for normal folks! In this case, lets say FZFXX is not 50% by assets in treasury. How will we know the actual number? Is this published somewhere?
I ask because if someone had 50% in FZFXX and another 50% in an actual treasury note. Then I guess I can safely assume at least 50 is treasury invested? In that case can I deduct 50.5% of dividends from FZFXX from state taxes?
The table in the tax software section in the tfb post raises more question like the above for me:
https://thefinancebuff.com/state-tax-ex ... -residents
What if they use a second fund that barely qualified and in the case how will we calculate the 50% threshold combined for 2 funds. I did not realize this is so much tricker than originally anticipated.
Statistics: Posted by savealot — Tue Feb 18, 2025 12:56 am — Replies 16 — Views 793