The Tax Cuts and Jobs Act (TCJA), which took effect in the beginning of 2018, overhauled the federal tax code.
It roughly doubled the standard deduction, adjusted individual income tax brackets , lowered most of the rates and applied a $10,000 cap on the state and local tax deduction.
Mutual funds tend to have higher turnover – that is, buying and selling of underlying securities – and by law they must distribute capital gains.
Meanwhile, income from Treasurys are subject to federal income tax, but exempt from state and local tax.
Seek tax-efficient opportunities for your holdings Take a look at your portfolio and see whether there are opportunities for tax-advantaged yield, Woodard said.
Persons:
Jared Woodard, Woodard, MLPA
Organizations:
Bank of America, Mutual, Bloomberg, ETF, SEC, Muni, MLP & Energy Infrastructure, Global, MLP, MLPX, & $
Locations:
U.S