Sentences with phrase «from municipal bond»

Although the income from a municipal bond fund is exempt from federal tax, you may owe taxes on any capital gains realized through the fund's trading or through your own redemption of shares.

In most cases, investors get very little from the municipal bond market.

Therefore, higher - income investors (with theoretically higher tax bills) are likely to benefit more from municipal bond yields than individuals in lower tax brackets.

Not all distributions from municipal bond funds are exempt interest dividends.

I like to have a portion of my dividends come from municipal bond funds.

the area or activities to which the funds raised from a municipal bond issue will be directed and, in turn, the source of future bond interest payments and principal repayment; for general obligation bonds, funds raised may be for general purposes, both operating and infrastructure, and payments are secured by the general taxing power of the issuer — usually a state, town, or city; revenue bonds are categorized under terms such as «Utilities» or «Transportation»

It includes tax - exempt interest income like you'd get from a municipal bond.

In today's low - rate environment, even investors in the lowest tax bracket derive an income benefit from municipal bond tax - exemption.

footnote * Although the income from a municipal bond fund is exempt from federal tax, you may owe taxes on any capital gains realized through the fund's trading or through your own redemption of shares.

Although the income from a municipal bond fund is exempt from federal tax, you may owe taxes on any capital gains realized through the fund's trading or through your own redemption of shares.

Although the income from municipal bonds held by a fund is exempt from federal tax, you may owe taxes on any capital gains realized through the fund's trading or through your own redemption of shares.

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

Investment to consider: The interest from municipal bonds is generally free from federal taxes and often state taxes as well, depending on your state or where you file — savings that may potentially translate into higher returns.

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.

Investors in five of the seven new tax brackets would have seen higher after - tax returns from municipal bonds than US Treasuries or other taxable bonds (FIGURE 1).

Combined income is your AGI, plus interest from municipal bonds and half of your Social Security benefit.

Investors in five of the seven new tax brackets would have seen higher after - tax returns from municipal bonds than US Treasuries or other taxable bonds (FIGURE 1).

Historically, income return from municipal bonds has contributed much more to municipal bond total returns than changes in municipal bond prices.

Dividends, capital gains, withdrawals from IRAs in excess of the required minimum distribution, Roth IRA conversions, and even interest from municipal bonds can increase the amount of Social Security benefits that are taxed.

Interest gained from municipal bonds is exempt from federal income tax, and state income tax if you reside in the state where the bond was issued.

Those distributions represent interest received by the mutual fund from municipal bonds and similar investments.

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

However, in some cases, the alternative minimum tax (AMT) may apply to taxpayers who rely on income from municipal bonds.

Interest from municipal bonds is generally exempt from federal income taxes, and, in most cases, state and / or local income taxes, so long as the investor resides in the state that issued the bond.

Even Texas investors might benefit from municipal bonds.

Net investment income includes your realized capital gains, dividends and interest, though not interest from municipal bonds.

However, this interest rate is higher than you'd realize from CDs and savings accounts, and the most important benefit is that all interest you earn from municipal bonds is exempt from federal income tax.

For example, you don't pay federal taxes on interest earned from municipal bonds.

One can pick from municipal bonds, treasury bonds or corporate bonds.

What counts is your so - called modified adjusted gross income, which includes interest from municipal bonds.

Similarly, income from municipal bonds are free of Federal income taxes, which can boost the «take home» income from a bond portfolio.

Interest from municipal bonds, those issued by state and local governments, is exempt from federal income tax and usually tax of the issuing state.

Historically, some tax policy makers believed that it was unconstitutional to tax interest from municipal bonds (a.k.a. bonds issues by state and local governments) for federalism reasons.

Not exact matches

With revenues from the band's winery, golf course, luxury hotel and other ventures as collateral, it can now issue bonds just like municipal, provincial or federal governments — a first in Canada for a native band.

Marianela Collado, CPA and CFP with Tobias Financial Advisors, warned retirees against creating more state taxable income by keeping municipal bonds from a former resident state that would become taxable in the new resident state.

Bonds due in 2018 and won by BofA were «aggressively» priced with a 1.64 percent yield that narrowed Illinois» spread over Municipal Market Data's benchmark triple - A yield curve to 70 basis points from 100 basis points ahead of the sale, Greg Saulnier, a MMD analyst, said.

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.

Also, once you sell a municipal bond, the proceeds from that sale may be subject to capital gains or other types of taxes.

Put more tax - efficient investments (low - turnover funds like index funds or ETFs, and municipal bonds, where interest is typically free from federal income tax) in taxable accounts.

Municipal bond funds are exempt from paying federal taxes, and in some case even exempt from state taxes... Most investors that invest in mumi funds are in the higher tax bracket, so muni funds are a good choice, to avoid being taxed on the dividends.

In the U.S., deteriorating urban finances — from Detroit to Stockton, Calif. — threaten municipal bond holders, public - sector workers, and taxpayers.

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.

Although municipal bond yields are generally lower than taxable bond fund yields, some investors in higher tax brackets may find they have a higher after - tax yield from a tax - free municipal bond fund investment instead of a taxable bond fund investment.

Bond fund withdrawals might have had a greater effect on markets where there is less trading, such as municipal securities — but even there, redemptions from bond funds would have accounted for less than 10 percent of the primary dealers» tradBond fund withdrawals might have had a greater effect on markets where there is less trading, such as municipal securities — but even there, redemptions from bond funds would have accounted for less than 10 percent of the primary dealers» tradbond funds would have accounted for less than 10 percent of the primary dealers» trading.

Blackrock Muni Yield Investment Quality (MFT) is a closed end fund that seeks current income exempt from regular Federal income tax through investment in insured investment grade municipal bonds.

Blackrock Muni Holdings Quality (MUS) is a closed end fund that seeks current income exempt from regular Federal income tax through investment in investment grade municipal bonds.

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.

MUNICIPAL BOND FUNDS: Invest in bonds whose income is exempt from federal income tax.

STATE - SPECIFIC BOND FUNDS: Invest in tax - exempt municipal bonds whose income is also exempt from the income tax of a specific state.

Other strategies include taking distributions from retirement plans before 70 1/2 when the taxpayer is in a lower bracket or investing in municipal bonds in order to receive tax - free interest income.