State tax filing

"Are the capital gains from the sale of Vanguard NJ Long Term Exempt Admiral
Fund (VNJUX) exempt from New Jersey taxes ?"

 

I got the following answer directly from NJ taxation to the above question:

 

"If the Vanguard NJ Long Term Exempt Admiral Fund (VNJUX) meets the qualifications of an exempt obligation, the capital gain would not be subject to New Jersey tax. See: https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git5.pdf"

 

Vanguard did not answer the question about whether or not VNJUX is a NJ  "Qualified Investment Fund." I assumed that it is since VNJUX invests 80% or more of its funds in securities that are exempt from NJ Income tax.

 

Are the capital gains from the sale of Vanguard NJ Long Term Exempt Admiral Fund (VNJUX) exempt from Federal taxes? I am assuming that it is not exempt since I could not find anything that specifically exempts it from Federal taxes.

 

Thanks for all your help- appreciated it.