Tax-Exempt Interest

(redirected from Tax Exempt Interest)

Tax-Exempt Interest

In the United States, interest on a bond not subject to federal taxes. Generally speaking, tax-exempt interest comes from a municipal bond. It is also important to tax-efficient funds because dividends on these funds coming from tax-exempt interest are also tax free. However, tax-exempt interest is required to be reported to the IRS and may affect one in other ways, notably on eligibility for Social Security benefits.
References in periodicals archive ?
Low Tax Exempt Interest Rates: While today's tax exempt rates are almost identical to taxable rates, historically tax-exempt rates have been, on average, 1% lower than taxable rates.
Additionally, the 80/20 Tax Exempt Interest rate is based on a trailing 52-week moving average.
Based on the interest portfolio, the partnership expects to earn about $600 of tax exempt interest and about $600 of taxable interest.
1% in the fourth quarter of fiscal 2008, primarily due to our tax exempt interest income as a percent of actual operating income for the year and a tax refund from fiscal 2006 amended returns.
Exempt interest dividends are paid from tax exempt interest your fund earns, generally from municipal bonds.
These discounts qualified for treatment as tax exempt interest under Code Section 103(a).
State income taxes were offset primarily by the benefit we received from tax exempt interest income, the domestic production activities deduction, and federal and state research and experimental credits.
Provisional income includes adjusted gross income, tax exempt interest income, certain foreign source income, and half of the total Social Security or Railroad benefits received for the year.
The increase in effective rate for the nine months ended March 31, 2007 was the result of increased pre-tax income and the resultant reduced percentage of tax exempt interest included in pre-tax income.
The Chairman noted that the existing demand for new housing in Puerto Rico continues strong and so does Doral's share of this new housing market including the growing government-sponsored affordable housing loans, most of which enjoy tax exempt interest rates.
Additionally, the existing demand for new housing in Puerto Rico in 2004 continues strong and so does Doral's share of this new housing market including the growing government-sponsored affordable housing loans, most of which enjoy tax exempt interest rates, with a strong mortgage backlog and a substantial visible pipeline of increasing mortgage volume.
09% Note 1- Average balances include nonaccrual loans Note 2- Tax exempt interest is calculated on a tax equivalent basis.