Income Beginner: Taxes in Bond Investing

Introduction to Taxes in Bond Investing 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 Summary of Taxes in Bond Investing
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Summary of Taxes in Bond Investing

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Summary of Taxes in Bond Investing

Bond investing poses special tax issues. While bond interest is taxed as ordinary income, some bond interest is tax free. On the other hand, tax-free bonds may generate taxable income due to capital gains on their sale. As an educated investor, you need to be aware of how bond earnings are taxed.

You also need to be aware of how bond earnings are taxed on both the federal and state levels as well as how bond discounts and premiums affect taxation.

What you have learned

  1. How to Calculate Your Taxable Equivalent Yield for Federal and State Taxes
  2. How to Calculate Your Federal Taxable Equivalent Yield
  3. How Are Savings Bonds Taxed?
  4. Taxation of Inflation-Adjusted Securities
  5. Tax Exemption of Municipal Bonds
  6. Tax Issues of Discount and Premium Bonds

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