How do I answer "Is any of this interest from funds with less than 50% of their assets invested in California and U.S. obligations? " My 1099B doesn't specify any amount?

[RobertG]

Check your 1099-B statement.  Review the interest income detail in the statement.  Usually, your investment statement will detail how much interest was paid by the bonds from each state. 

You may be able to determine how much of the assets include California bonds or US Government bonds.  If the number of California or US Government bonds in the mutual fund is less than 50%, answer Yes to this question. 

This determines if your interest will be taxable in California.

If you are unable to find the answer to this question, contact the mutual fund company.  They are familiar with this topic and can easily assist you with this question.  

Or, you could visit the website of your mutual fund to find a percentage of California bonds and other assets in the portfolio.

This answer was provided by: 

CarolC

[amolpujari]

My 1099 B doesn't have any interest income detail section. The 1099 B I received was not for any bond, this is a computer share doc and doesn't have any bonds information in it. So, should I just select "Yes" as answer for this?

[SteamTrain]

@amolpujari 

You are going  to have to specifically define whether you are referring to the  1099-DIV, or 1099-INT form area on a "consolidated" 1099-B. Those are handled differently.

Specifically, that question should only come up if you are showing $$ in box 11 of a 1099-DIV form and you are a resident of CA. The question is there because you can only break out the sub-CA $$ amount from box 11, for favorable CA-tax treatment, if the mutual fund (or municipal money market fund) that you own has over half it's assets in CA-only bonds.  You have to get that information from the mutual fund company.....if you can't get it or find it, then you just say NO, and indicate that box 11 $$ are from "More than one state"  (or "Multiple States"....term depends on the type of software used, but that selection is at the end of the list of states).

However, you should already know if you are invested in a CA-weighted Municipal Bond fund as all that I have ever seen will include "CA" or "California" in the name of the fund.

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The question should not come up for box 8 $ on a 1099-INT, since those $$ are now specifically for individual bonds, and you would know if you hold individual bonds from CA in your supplemental list of personal holdings in that Brokerage or Fund company.. 

[SteamTrain]

The part that is also referring to US Obligations, might be referring to $$ in box 1a of the 1099-DIV ...since CA doesn't ax US bond interest...but again, it's something you would have to tweak out of your investment documents (and it may not be in your "consolidated" 1099-B/1099-DIV/1099-INT).  Otherwise you would not indicate any of the $$ in box 1a of the 1099-DIV is from US obligations either....i.e you need to be able to prove it from your Brokerage/Fund documentation or it isn't allowed.