Triple tax-exempt

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Triple tax-exempt

Municipal bonds featuring federal, state, and local tax-free interest payments.

Triple Tax-Exempt

Describing a municipal bond that is exempt from federal, state, and local taxes. The United States Constitution forbids the federal government from taxing any state and local bonds. Most states and municipalities offer tax exemptions for residents who invest in their bonds; thus, to be eligible for triple-tax-free status, a bondholder must be resident in the municipality and/or state issuing the bond. Triple-tax exempt bonds almost always offer low returns, exposing bondholders to inflation risk. See also: After-Tax Basis.
References in periodicals archive ?
During 2008, income from tax-exempt securities totaled $11.
Outlines why tax-exempt securities should remain a core holding for higher tax-bracket investors
In addition to its Corporate Finance practice, it is known for its Municipal Bond Department, which works closely with an array of municipal clients and institutional buyers of tax-exempt securities and other financial products.
Neither failure to disclose possible retail use for a part of Belmont nor environmental concerns met the legal test of ``material omission'' in issuing tax-exempt securities.
Hence, section 382 limits the incentive of corporations to "traffic" in, or purchase, the net operating losses of target companies by limiting the acquirer to an expected rate of return no better than can be achieved by parking an equivalent amount of money in tax-exempt securities.
The legislative and regulatory environment for tax-exempt securities seems to be in a constant state of flux, requiring vigilance by issuers to ensure they understand the current rules and regulations.
Even if the investment strategy is not growth-oriented, investing trust assets in tax-exempt securities should be avoided in almost all cases because of the unique tax structure of charitable remainder trusts.
These changes would clearly have profound effects on the market for tax-exempt securities, insurance products, home ownership and home prices.
If the proceeds are used to acquire tax-exempt securities, the interest is not deductible.
The rules would exempt cities and towns which have less than $10 million worth of outstanding tax-exempt bonds and notes or that have issued less than $3 million of tax-exempt securities over the previous two years.
Runoffs of tax-exempt securities in 1990 were more pronounced at those banks that posted large losses and were therefore not in need of sheltering income from taxation.