For a mutual fund with only capital gains income and 7% from U.S Treas. specified, can I reduce the capital gains by 7% so they are not taxed by state?

[dom416]

 Mutual fund 1099-DIV has long and short term capital gains only.  No dividend, no interest. The 1099 also specifies 7.67% of the income is from U.S Treasury.  I understand U.S Treasury income is exempt from state income tax.  How much of the long and short term gain can I attribute to U.S Treasury? 

[Anita01 · Accepted solution]

Capital gains from the sale of Treasury instruments are not excluded from taxation at the state level, only the interest income.so the answer would be none, unfortunately.