Nontaxable Dividends
Barron's Business Dictionary:
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Nontaxable Dividends
Dividends from a regulated investment company (mutual fund) that were earned by the fund as interest from tax-exempt state and municipal debt obligations and other exempt obligations. At least 50% of the regulated investment company’s assets must be invested in tax-exempt obligations for dividends to be tax-free.
| Nonstore Retailing, Nonstock Corporation, Nonstandard Mail | |
| Nontaxable Interest, Nonvoting Stock, Norm |
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Nontaxable Dividends
Investopedia Financial Dictionary:
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Nontaxable Dividends
Dividends from a mutual fund or some other regulated investment company that are not taxed. Taxes are not paid out because the fund invests in municipal and other tax exempt investments.
Investopedia Says:
The mutual fund must invest over 50% of its capital into tax exempt investments for the dividends to be classified as nontaxable.
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Barron's Business Dictionary
Dictionary of Business Terms. Copyright © 2007 by Barron's Educational Series, Inc. All rights reserved.
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