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1.
Which of the following in a mutual fund is not taxable?
A mutual fund share. Only income is taxable.
2.
Which would you rather own in a taxable account?
It depends on which is the better aftertax performer. If you're investing in a taxable account, it's wise to consider taxes when investing. However, don't let the tax tail wag the investment dog. What's most important is how much you keep after taxes, not how much Uncle Sam gets.
3.
You may be taxed on a transfer between mutual funds because the IRS sees the transfer as a dividend.
False. You will be taxed on it because the IRS sees it as a capital gain, if one has been made.
4.
Which IRS tax form shows the proceeds of mutual fund share sales?
1099-B. This form reports the sales of shares.
5.
Income from municipal bond mutual funds may be taxable on the state level.
True. In some cases, they are taxable on the state level.
