Ad
related to: current california municipal bonds tax exempt
Search results
Results from the WOW.Com Content Network
Tax-Free Interest: Most municipal bonds are exempt from federal income tax and some may also be state- and local-tax-free. Low Risk: Because they are backed by government entities, muni bonds have ...
A municipal bond, commonly known as a muni, is a bond issued by state or local governments, or entities they create such as authorities and special districts. In the United States, interest income received by holders of municipal bonds is often, but not always, exempt from federal and state income taxation.
The interest income is exempt from federal income tax for the recipient—a treatment similar to that for interest income from municipal bonds. Tax anticipation notes are short term notes, issued at a discount, with a maturity period usually less than a year or a stated future date.
The appeal of municipal bonds lies in their tax advantages. Their interest income is typically exempt from federal income tax, and potentially state and local taxes if the investor resides in the ...
Enter municipal bonds. They are fixed-income securities, so they offer a reliable return, but they are exempt from federal taxation. In some cases, they are also exempt from state and local taxes.
These rules prevent the avoidance of tax that might otherwise be available by characterizing the repayment as a capital gain, which is taxed at a lower rate, or by deferring the recognition of income until the bond is repaid at maturity. There are a number of exceptions to the original issue discount rule, including: Tax exempt obligations
Municipal bond taxes. Municipal bonds issued by local or state governments generally offer interest income that is exempt from federal taxes. Moreover, if you live in the state where the bond is ...
Build America Bonds are taxable municipal bonds that carry special tax credits and federal subsidies for either the bond issuer or the bondholder. Build America Bonds were created under Section 1531 of Title I of Division B of the American Recovery and Reinvestment Act that U.S. President Barack Obama signed into law on February 17, 2009.
Ad
related to: current california municipal bonds tax exempt