Introduction to Taxes in Bond Investing
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Learn how bond income is taxed. There are rules for savings bonds, municipal bonds, US government bonds, and discount and premium bonds.
What you will learn
- How to Calculate Your Taxable Equivalent Yield for Federal and State Taxes
- How to Calculate Your Federal Taxable Equivalent Yield
- How Are Savings Bonds Taxed?
- Taxation of Inflation-Adjusted Securities
- Tax Exemption of Municipal Bonds
- Tax Issues of Discount and Premium Bonds
What do you know?
Introduction to Taxes in Bond Investing
Bonds may produce taxable or tax-free income as well as taxable long-term and short-term capital gains. As a bond investor, you need to be aware of the tax consequences of bond earnings, whether they be in the form of interest or capital gains. Furthermore, you need to know when a tax-free bond generates taxable income.
