What security type do you use for Money Markets? CD seems closest, but Mutual Fund is technically correct, too. Thanks,
-Jeff
What security type do you use for Money Markets? CD seems closest, but Mutual Fund is technically correct, too. Thanks,
-Jeff
If it's with a brokerage firm like Fidelity or Vanguard, I would classify it as a mutual fund investment account (it pays dividends). If it's one of the savings/check writing money market products offered by banks, I would classify it as a checking account (it pays interest).
As for me-- as ANY "dividends" will be treated as Plain Income, for tax purposes, Just treat it as Income(Read CD)! (unless it can have Capital Gains TAX consequences, like a FOREIGN money market fund, because of currency values). Kinda like the "Dividends" that a Credit Union pays,they are subject to INCOME tax, not Capital Gains tax! Jim
Jeff Schwarz wrote:
I could never tell the difference between income and dividend on my tax form. They all seemed to go to the same place (but I haven't looked at the forms since they created this new qualified dividend, for stocks, so who knows now).
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