Aeowyn
Recycles dryer sheets
I am a new resident to Tennessee. Tennessee has no income tax and no "capital gains" tax (not completely sure about the latter).
They do have a tax on dividend income but their definition of what is considered dividend income is a little confusing. In the definition of what is taxable it includes "...income from mutual funds including capital gain distributions".
Are there are an Tennessee residents with mutual fund investments out there that can define this a little better?
Does it mean 1099-Div item 1 amounts that include dividend and short term capital gain distributions only? Or does it also include 1099-Div item 2a that documents long term capital gain distributions.
I'm leaning toward just 1099-Div item 1. It makes sense that they since short term capital gain distributions from mutual funds are lumped in with dividends that they would tax them the same.
And I don't think it includes this, but does it include gains realized from the sale of mutual funds reported on 1099-B?
They do have a tax on dividend income but their definition of what is considered dividend income is a little confusing. In the definition of what is taxable it includes "...income from mutual funds including capital gain distributions".
Are there are an Tennessee residents with mutual fund investments out there that can define this a little better?
Does it mean 1099-Div item 1 amounts that include dividend and short term capital gain distributions only? Or does it also include 1099-Div item 2a that documents long term capital gain distributions.
I'm leaning toward just 1099-Div item 1. It makes sense that they since short term capital gain distributions from mutual funds are lumped in with dividends that they would tax them the same.
And I don't think it includes this, but does it include gains realized from the sale of mutual funds reported on 1099-B?