taxable municipal bond

0.01 sec.

Taxable municipal bond

Taxed private-purpose bonds issued by the state or local government to finance prohibited projects such as sports stadiums.

A municipal bond in which interest paid to the bondholder does not qualify as tax-exempt for federal tax purposes because of the use to which the bond proceeds are put by the municipal borrower. Taxable municipal bonds were reissued in 1986, the first issue since 1913, because of limitations placed on municipal obligations by tax reform. Although taxable municipal bonds are subject to federal taxation, most are not subject to taxation by the state in which the municipal issuer is located. Taxable municipal bonds are generally more appropriate for pension funds and other tax-exempt investors than for individual investors.

How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content.

?Page tools

Printer friendly
Cite / link
Email

Feedback
Add definition

? Mentioned in

Municipal Bond

Financial browser

? Full browser

Tax-Timing Option
Taxable acquisition
Taxable Bond
Taxable Equivalent Yield
Taxable Estate
Taxable Event
taxable income
taxable municipal bond
Taxable transaction
Taxable U.S. Domestic Corporation
Taxable Year
Taxpayer Identification Number
Taxpayer Relief Act of 1997
Taylors Rule
TBA

Financial Dictionary

Free Tools:	For surfers: Free toolbar & extensions \| Word of the Day \| Help For webmasters: Free content \| Linking \| Lookup box \| Double-click lookup \| Partner with us

All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional. Terms of Use.