Sentences with phrase «exempt bond interest»

The income thresholds above are based on «Modified» Adjusted Gross Income, where the «modification» is to add any tax - exempt bond interest to the individual's current AGI.

For tax - exempt municipal OID bonds, this income is not subject to the ordinary income tax, although it is required to be reported for informational purposes in the same manner as other tax - exempt bond interest.

Not exact matches

Tax exemptions In general, the interest you earn from your tax - exempt municipal securities is exempt from federal income tax and in some cases, state or local income tax, depending on whether you are a resident of the state that issued the bond.

debt obligations of the U.S. government that are issued at various intervals and with various maturities; revenue from these bonds is used to raise capital and / or refund outstanding debt; since Treasury securities are backed by the full faith and credit of the U.S. government, they are generally considered to be free from credit risk and thus typically carry lower yields than other securities; the interest paid by Treasuries is exempt from state and local tax, but is subject to federal taxes and may be subject to the federal Alternative Minimum Tax (AMT); U.S. Treasury securities include Treasury bills, Treasury notes, Treasury bonds, zero - coupon bonds, Treasury Inflation Protected Securities (TIPS), and Treasury Auctions

Tax advantages Interest income from Treasury bonds is exempt from state and local income taxes, but is subject to federal income taxes.

In addition to providing a source of income and diversification, the interest income on municipal bonds generally is exempt from federal income tax and may also be exempt from state and local taxes for residents in the state where the bond is issued.

If a fund investor is resident in the state of issuance of the bonds held by the fund, interest dividends may also be exempt from state and local income taxes.

Interest income generated by municipal bonds is generally not subject to federal taxes, and may be tax - exempt at the state and local level as well, if the bonds were issued by the state in which you live.

Interest income generated by municipal bonds is generally expected to be exempt from federal income taxes and, if the bonds are held by an investor resident in the state of issuance, state and local income taxes.

debt obligations of the U.S. Government with maturities of 10 years or longer; coupon interest for Treasury bonds is exempt from state and local taxes, but is federally taxable; interest income may also be subject to alternative minimum tax

interest from municipal bonds as well as distributions from mutual funds that qualify as exempt interest dividends; this income is generally not subject to regular federal income taxes; note that Fidelity reports this information to the IRS, and may be required to report the information to tax authorities in California among other states; the total amount or a portion of tax - exempt income (reported as specified private activity bond interest) must be taken into account when computing the federal Alternative Minimum Tax (AMT) applicable to individuals and may be subject to state and local taxes; you are required to report tax - exempt income on Form 1040, and may be required to report it on your state tax return as well

Other shareholders can determine the AMT reportable specified private activity bond interest by multiplying the percentage shown by the total Tax - Exempt Income Dividends received during the year as reported on their annual Year - End Asset Summary Statement.

If a fund's investor is a resident in the state of issuance of the bonds held by the fund, interest dividends may also be exempt from state and local income taxes.

Interest from U.S. government obligations such as U.S. savings bonds is exempt, as is active duty pay from the National Guard or U.S. armed forces.

In some states, interest on bonds issued by that state, and the municipalities within it, are also exempt from that state's income taxes.

The 2017 low interest rate environment has created a wonderful example of the power of tax - exempt bonds.

Net investment income does not include tax - exempt interest from municipal bonds (or funds); withdrawals from a retirement plan such as a traditional IRA, Roth IRA, or 401 (k); and payouts from traditional defined benefit pension plans or annuities that are part of retirement plans.

As of last week, tax - exempt government bonds hit a four year high, with many investors believing that the recent tax reform and an expected rising interest environment will push bond pricing even higher, offering a very attractive economic option for yield starved investors — many of which in recent years have had to increase risk capital allocations to generate reasonable outcomes.

The new tax law repeals the tax - exempt interest exclusion for advance refunding bonds, effective for advance refunding bonds issued after December 31, 2017.

Fidelity ® Conservative Income Municipal Bond Fund (FCRDX) This fund, whose income is normally exempt from federal income taxes, might be appropriate for investors looking for more yield than money market funds are providing, and wanting to take a more conservative approach to both credit and interest rate risk than many other bond fuBond Fund (FCRDX) This fund, whose income is normally exempt from federal income taxes, might be appropriate for investors looking for more yield than money market funds are providing, and wanting to take a more conservative approach to both credit and interest rate risk than many other bond fubond funds.

That said, we are relieved that an earlier provision to repeal the tax - exempt interest exclusion for qualified private activity bonds did not become law.

Funding for the approximately $ 40 million redevelopment project comes from several sources including: New York State Homes and Community Renewal's Housing Finance Agency (HFA) provided $ 20.73 million of tax - exempt bond financing, a $ 5.27 million New Construction Capital Program low interest subsidy; HFA Middle Income Housing Program loan of $ 2.76 million and a 4 percent Low Income Housing Tax Credit annual allocation of just over $ 1 million which leverages nearly $ 10 million of Low Income Housing Tax Credit equity.

Such bonds function as an alternative to direct public financing of housing projects: Since interest income on PABs is tax exempt, investors are willing to buy them at very low interest rates, and this makes it relatively affordable for states, municipalities, and nonprofits to finance housing (and hospitals, infrastructure, and other public works) through the private capital market.

This does not account for a significant chunk of Cuomo's investment income, $ 27,803, which was tax - exempt interest on government bonds that the governor holds through a blind trust account with AMG National Bank.

Using tax - exempt bonds, TSASC pre-paid the TIFIA loan with interest on February 8, 2006.

Oh, and that USA friend of mine — she has a municipal bond portfolio where she a) is earning over 4 % on average, and b) pays NO TAXES on the interest income whatsoever (munis are exempt).

The interest income from tax free municipal bonds is exempt from federal income tax.

Because investors do not have to pay taxes on returns, tax - exempt bonds will have lower interest than equivalent taxable bonds.

You'll have to pay federal income tax on interest from these bonds, but the interest is generally exempt from state tax.

Interest income generated by Treasury bonds and certain securities issued by U.S. territories, possessions, agencies, and instrumentalities is generally exempt from state income tax but is generally subject to federal income and alternative minimum taxes and may be subject to state alternative minimum taxes.

As an example, interest on some tax - exempt municipal bonds is added to the AMT calculation as taxable bond income.

Sometimes a state that usually taxes interest on municipal bonds will exempt specific bonds at the time it issues them.

Also unlike OID, market discount is taxable income regardless of the tax - exempt nature of a bond's interest income.

In the case of a tax - exempt bond, such OID is treated as tax - exempt interest.

If your mutual fund invests in municipal bonds or other state and local government obligations, some or all its distributions will be treated as exempt interest.

If borrowed funds are only partly or indirectly used to purchase or hold tax - exempt bonds, then the rule will disallow a deduction for that portion of the interest allocable to the tax - exempt bonds.

If you're invested in a state - specific fund that invests in tax - exempt bonds issued by the state where you live, you may not owe state income tax on the interest either.

The unique feature that sets municipal bonds apart from all other capital market securities is that the interest earned on them is exempt from federal income taxes.

Although tax - exempt bonds might have a lower interest rate than taxable bonds, if you're in a high tax bracket, your after - tax rate of return might be higher.

Without this rule (the «interest disallowance rule»), taxpayers would realize a double tax benefit from using borrowed funds to purchase or carry tax - exempt bonds, since the interest expense would be deductible, while the interest income would escape federal tax.

Interest earned on Tax free bonds is exempted from income tax.

Generally speaking, interest on municipal bonds is exempt from federal income taxes.

Other shareholders can determine the AMT reportable specified private activity bond interest by multiplying the percentage shown by the total Tax - Exempt Income Dividends received during the year as reported on their annual Year - End Asset Summary Statement.

Although this does not constitute a direct tax on the tax - exempt interest itself, it does increase the overall tax liability of the individual and should be taken into account in making the investment decision of whether or not to purchase the tax - exempt bond.

This article does not cover all of the possible tax consequences resulting from ownership of tax - exempt bonds and the receipt of interest thereon, and it is not intended as tax advice to any person.

In some states, interest on bonds issued by that state, and the municipalities within it, are also exempt from that state's income taxes.

Interest from these bonds may be exempt from federal and sometimes state income taxes

This rule does not apply in the case of a tax - exempt bond in order to ensure that the full amount of OID is treated as tax - exempt interest to the holder and that the holder does not have an «artificial» gain on the sale of the bond.

The effect of this rule is that a taxpayer who purchases a tax - exempt bond subsequent to its original issuance at a price less than its stated redemption price at maturity (or, if issued with OID, at a price less than its accreted value), either because interest rates have risen or the obligor's credit has declined since the bond was issued, and who thereafter recognizes gain on the disposition of such bond will have part or all of the «gain» treated as ordinary income.

Even though the interest paid on a municipal bond is tax - exempt, a holder can recognize gain or loss that is subject to federal income tax on the sale of such a bond, just as in the case of a taxable bond.