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What is a tax free bond?
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2nd Nov 2009 by Mark P. Cussen, CFP, CMFC
A tax-free bond is one that pays interest that is either partially or totally tax-free. Treasury securities are exempt from state and local taxes, while municipal bonds issued by municipalities are usually exempt from federal, state and local taxes. Tax-free bonds are usually more beneficial for high-income taxpayers, but they can also trigger the Alternative Minimum Tax.
A tax-free bond is one that pays interest that is either partially or totally tax-free. Treasury securities are exempt from state and local taxes, while municipal bonds issued by municipalities are usually exempt from federal, state and local taxes. Tax-free bonds are usually more beneficial for high-income taxpayers, but they can also trigger the Alternative Minimum Tax.
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1st Nov 2009 In Bonds
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Subjects: bond,
tax free bond,