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I have a very approximate understanding of how derivatives work based on my recollection of news from 2004.

I have a specific question of current interest to me.

Is there any way that a municipal bond based money market mutual fund could separate the long-term capital gains generated by prudent asset management from the remainder of the fund and sell them to investors eager to own capital gains because of their favorable tax treatment? I would like to retain the other income the investment generates, income that is taxed as 'ordinary income."

From my perspective the income tax filing complications I experience because I have to recognize a less-than $100 long-term capital gain end up costing me way more than the value received.

thanks
baumgrenze
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