Are any types of investment income non-taxable?

In Arizona, certain types of investment income are generally non-taxable. These include interest earned from US Treasury Bonds, state and municipal bonds, US savings bonds, and certain life insurance proceeds. Additionally, if the investment income was received from funds held in an IRA, 401(k), or other similar retirement plans, it is generally tax-free. Gains that are made from the sale of capital assets, such as real estate, stocks, bonds, and other investments, may also be non-taxable. Depending on the nature of the transaction and the amount of time the asset was held, there may be no capital gains taxes due. However, in most cases capital gains are taxable, so investors should consult a tax professional before making a decision about their taxable investment income. Income that investors receive from dividends is usually taxed at the federal and state level. There are some exceptions, such as qualified dividend income, which may be eligible for special, lower tax rates. Qualified dividends are those paid by corporations or other entities that have been held for at least 60 days within a tax year. In conclusion, different types of investment income may be either taxable or non-taxable. Investment income that is generally non-taxable in Arizona includes US Treasury bonds, state and municipal bonds, and certain life insurance proceeds. Gains from the sale of capital assets and qualified dividends may also be eligible for special, lower tax rates. Investors should speak to a tax professional to determine which types of investment income are taxable and which are non-taxable.

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Are any types of investment income non-taxable?

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