Help
Course Catalog > Funds > 100
Funds 104: Taxes on Mutual Fund Income

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Which of the following in a mutual fund is not taxable?
Choose wisely. There is only one correct answer.
A mutual fund share. Only income is taxable.
2.
You may be taxed on a transfer between mutual funds because the IRS sees the transfer as a dividend.
Choose wisely. There is only one correct answer.
False. You will be taxed on it because the IRS sees it as a capital gain, if one has been made.
3.
Which IRS form shows ordinary dividends?
Choose wisely. There is only one correct answer.
1099-DIV. Form 1099-DIV reports dividends.
4.
Buying a mutual fund that has a very low turnover rate will reduce the number of _______.
Choose wisely. There is only one correct answer.
Capital gains. A lot of turnover will likely result in a lot of capital gains, which are normally taxable. If you want to reduce taxes, consider low-turnover funds.
5.
Income from municipal bond mutual funds may be taxable on the state level.
Choose wisely. There is only one correct answer.
True. In some cases, they are taxable on the state level.