Tax Treatment of Municipal Securities: Municipal Securities

What this video covers

• When municipal bond interest is exempt from federal income tax, and when geography turns it into triple tax-free status
• Why United States territory bonds are triple tax-exempt for all investors regardless of home state
• Why premium amortization on municipal bonds is not deductible, and how it shrinks cost basis to par at maturity
• How original issue discount (OID) accretion is treated as tax-exempt interest, while market discount accretion is taxed as ordinary income
• When the de minimis exception at 0.25% per year to maturity converts market discount taxation from ordinary income to capital gain
• What triggers the alternative minimum tax (AMT): private activity bonds where more than 10% of proceeds benefit a private entity
• The $10 million bank qualified threshold and why small issuers care about the 80% carrying cost deduction for banks