I am considering doing trust deed investing to diversify my portfolio. The trust deeds would be on rehab properties in California, and I would receive monthly dividend/interest payments by the trust deed company. I reside in Ohio. The company said I would be issued a 1099-DIV at the end of the year. From my research, interest and dividend income would not be taxable in California, only in my home state...just like bank interest and stock dividends. Would this be true for this trust deed investment since I would be receiving a 1099-DIV, or is there a special rule that applies to this situation? I do not want to get involved if I would have to pay California taxes.