Tax status of municipal bond funds

[ed4588]

I have a couple of municipal bond funds. These funds, almost always, will be held in a taxable account. I have been unable to figure out how to get Fund Manager to treat the tax status of these funds appropriately. The dividends from the funds are generally not taxable, so I would like to exclude or segregate them when generating reports on my dividends. One way to do this is to mark the funds as tax free. However, the sale of such funds is likely to generate a capital gain/loss which is taxable.

Is there an easy way to deal with these non-taxable dividends and taxable capital gains from the same fund? I keep thinking that I must be overlooking the solution.

Ed

[Mark]

Hi Ed,

One solution would be to customize your distribution labels, and create one called "Tax-free Dividends". You can do this under "Options / Distribution Labels...". Now, you can record those distributions into this distribution type, so that you can separate them out when reporting.