This memo answers some frequently asked questions related to the treatment of market discount on municipal securities. (investinginbonds.com)
Investors should consult with their tax or accounting advisors when purchasing, selling or redeeming market discount bonds to ensure they fully understand the tax implications. (investinginbonds.com)
To the extent such gain represents accrued market discount, it will be taxed as ordinary income, with the balance treated as capital gain. (investinginbonds.com)