Does anyone know of any diversified total bond fund ETFs that are eligible for at least some California tax breaks, or how to tell if a fund is eligible?
In CA, interest can only be excluded from tax if at least 50% of fund assets are bonds considered "tax-free for California purposes" but how do you tell if a fund passes this test? I'm not looking for munis or treasury funds, but for more diversified funds that pass the 50% test.
For example, take BND (Vanguard Total Bond Market ETF). Does it pass the test?Today, it holds
- 44.2% in Treasury/Agency bonds (Should qualify for CA)
- 21.4% Government Mortgage-Backed Securities (which I'm not sure qualify-- if they all do, BND passes!)
- Remainder in corporate and foreign (don't qualify)
Submitted September 28, 2019 at 09:13PM by konriar https://ift.tt/2nBHNys
