All of the following result in nontaxable income except:
A)Stock dividend
B)Interest on municipal bonds
C)Capital gain distribution reinvested in the mutual fund
D)Distribution identified as a return of capital

Question

Quizplus · Accepted Answer

Capital gain distributions, even if reinvested in the mutual fund, are considered taxable income. The other options typically result in nontaxable income.

All of the Following Result in Nontaxable Income Except