Questions tagged [municipal-bonds]
The municipal-bonds tag has no usage guidance.
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Municipal bonds investment tax for couple living in different states and file jointly
My spouse and I live in different states (my spouse in A, and I in B).
If my spouse buys muni-bond for state A and we file jointly at tax year end, is this investment federal and/or state tax free (...
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What's the benefit of buying municipal bonds on the secondary market?
"Buy munis!", they say... "they're tax exempt!", they say... but are they? It looks like you're paying income tax on most of the Yield To Maturity (since interest rates have gone ...
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Zero Coupon Tax Free Bonds
I live in the United States. I believe that if an investor owns zero coupon tax free municipal bonds,the interest from their bonds must be reported on their tax return using the accrual method. Note ...
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Why is YTW (Yield-to-Worst) not available for some callable bonds?
E.g., I am looking at 67765QDG8 ("Oh St Wtr Dev Auth REV 5% 06/01/2023") on Schwab. It is callable but the yield to worse isn't indicated:
Bond details: https://i.stack.imgur.com/GNt20.jpg (...
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Does the CUSIP on a bond ever change?
Does the CUSIP on a bond change every change? A relative of mine, who lives in the US, has a trade confirmation showing that she bought a municipal bond. The bond was called recently and that trade ...
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Are there any downside in investing in a municipal money fund instead of purchasing municipal bonds assuming the money fund's yield > muni bond yield?
I wonder whether there exists any downsides in investing in a municipal money fund instead of purchasing municipal bond, assuming the money fund's yield (tax-free) is higher than the muni bond yield (...
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How can one compare the yield of a municipal money fund with the yield of a municipal bond?
Let's consider the following municipal money fund and the following municipal bond:
The Schwab Municipal Money Fund (Investor Shares) (SWTXX) discloses a 7-day yield (with waivers) as of 02/28/2023 ...
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If a US tax resident buys some shares in a municipal money fund and sells them shortly after, do they incur any taxes?
If a US tax resident buys some shares in a municipal money fund (e.g., Schwab Municipal Money Fund SWTXX) and sells them shortly after, do they incur any taxes? The municipal money fund is advertised ...
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How often do municipal bond ratings change per year?
I'm working with a financial planner. For various reasons I won't go into, l would like to buy individual muni bonds. For several reasons my planner is suggesting I let his company manage my ...
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Computing Your Tax Free Income for Federal Income Tax Purposes
On line 2A, a tax payer must report his/her tax free income without any detail.
I believe this number is computed by summing up all the values for tax free income on the 1099s. This number appears on ...
CommunityBot
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Calculating the cost basis on a tax free Zero Coupon Bond
A tax free zero coupon bond is issued with a yield to maturity of 3.5%. After some time, an
investor buys the bond at 50. ( 50 cents on the dollar ). When he buys the bond, the bond has a yield to ...
CommunityBot
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Cheapest single-state munis for Maryland [closed]
After researching a while, it seems T Rowe Price offers the lowest expense ratio for Maryland Muni Fund. Does anyone have a different observation?
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Do dividends from securities held on margin lose their tax advantage?
If a security pays a dividend, depending on the holding period of said security, the dividend might be considered "qualified" and taxed at a lower rate. What if the security is held with ...
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What is the actual growth of investment for a municipal bond fund?
I am a California resident, so if I invest in a California municipal bond fund, I will not pay taxes on both the federal and state level. I'm having difficulty interpreting the "Growth of $10,000" ...
CommunityBot
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municipal bond shares the same across different states and funds
Why is municipal bond stock behavior virtually the same, regardless what state or fund you look at?
For example, one can look at shares of the following mutual funds, each collecting municipal bonds ...
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In what order are Short Term Capital Losses applied when dealing with Municipal Bond Interest, Qualified Dividends, and Ordinary Income?
Let's say I have a net $100 in Short Term Capital Losses and no Long Term Capital Gains to offset. Let's say I also have $100 in Municipal Bond Interest Earnings, $100 in Qualified Dividends, and $100 ...
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To know if I want to hold Municipal Bonds, I want to know the percent of unfunded pension liabilities ($3.8T) to total state and local gov liabilities
I'm pondering whether or not to hold Municipal Bonds in my portfolio. My concern is that Municipalities seem to be stressed because unfunded pension liabilities keep growing and this seems alarming.
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Are Muni REVENUE bonds secured or can the local gov. use the revenues for other purposes not paying the bond holders if its going bankrupt?
Municipal bonds are of two kinds: GO (General Obligation) Bonds or Revenue Bonds. My question on Revenue Bonds is: are the revenues from the specific project secured or can the local government use ...
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Yield on municipal bonds versus treasury
I'm looking right now at the yields in Municipal bonds and Treasury bonds on Bloomberg: https://www.bloomberg.com/markets/rates-bonds/government-bonds/us and I see that yields on Municipal bonds are ...
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Mutual Fund or Municipal Bond
I am new to this Bond's so, I am not sure which one is a good investment like state or federal bonds? Is it worth to Invest now?
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For someone who already has enough cash to buy a home, isn't it better to wait and take mortgage when interest rates are high?
Contrary to common wisdom in media the reasons why I think that taking mortgage at higher interest rates may make more sense are that:
Almost all mortgages are callable by borrower. Hence, if you ...
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confusing returns from bonds
New to bond investment and seek clarification -
On Charles Schwab Bond Source chart for fixed income offerings, the followings are listed
CD 1yr: 2.6
Muni (AAA) 1yr: 2.71
I assume it meant annual ...
CommunityBot
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Are institutions like UBS limited in what they can buy, does that put the investor at a disadvantage?
I try to help with the finances of family members to make sure they are making wise decisions. I have a family member that is invested with UBS, and they have a financial advisor there that they have ...
CommunityBot
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Tax Free Zero Coupon Bonds and Taxes
I am an investor in Municipal bonds, including tax free zero coupon bonds. Imagine an investor buys a tax free zero coupon bond at 20 and then keeps the bond for 3 years and sells the bond at 15. He ...
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Opportunity to buy Illinois bonds that can never default?
Today Illinois bonds were downgraded to 1 above junk. The article.
Citation from article:
Despite the lack of a budget, Illinois has continued to cover payments
due on its bonds, and, like other ...
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What happens when I buy Continuously-Callable bonds
I am looking at this bond:
ILLINOIS ST GO 5% 04/01/2028 Callable (452152K59)
Continuously-Callable on 07/04/2017 @ 100.00000
The price of this bond right now is $100.05000 (YTM=4.993%). In ...
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Municipal bonds for married couple in different states
I am living in Michigan (state income tax) and my spouse is living in Washington (no state income tax). We are interested in investing in municipal bonds. From my understanding, in order to take ...
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Amending a Tax Return
A certain couple has filed their 2015 tax return and then they got a corrected 1099. The only thing that got changed was the amount of tax free interest they received. Since they are currently on ...
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Municipal Bonds and Taxes
A certain investor buys a a Municipal bond for $10,000. He then collects $3000 of tax free interest from the bond and after some time sells the bond for $8000. Does he have a capital loss for tax ...
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Basic understanding of bonds, values, rates and yields
I'm looking for a very simplistic (ELI5) explanation of how bonds work, but I'm not sure I have the basics correct.
As I understand it, a bond is basically a IOU or loan. Any company, government or ...
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Municipal Bond Fund tax risks?
I am looking at Tax-Exempt Municipal Bond Fund as a hassle free investment option. This is the first time I'm looking to invest outside of a retirement account, and having read up on the process of ...
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Why aren't muni bond yields driven to the point of indifference?
Why is there any point to munis?
By that I mean, why aren't yields driven down to be equal to the after-tax yields of taxable bonds of similar maturities and credit quality?
Obviously they are ...
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How can I determine if I qualify for a tax exemption on distributions from a municipal bond ETF?
I am interested in two municipal ETFs for my IRA retirement account: NXJ (New Jersey Municipal Bond Fund) and NRK (New York Municipal Bond Fund).
I live in New Jersey and NXJ currently has a ...
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Does the Federal Reserve have the power to buy municipal bonds through quantitative easing?
Does the Federal Reserve (or any other central bank in any other country) have the power to buy municipal bonds through quantitative easing? If it does, where would I find out how much?
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What do the terms par value, purchase price, call price, call date, and coupon rate mean in the context of bonds?
I am having a hard time understanding municipal bonds. What is the par value vs. purchase price? What is the call date? What is the call price? The coupon rate is just the interest paid out to you ...
CommunityBot
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What could happen to Detroit Municipal bonds because of Detroit's filing for bankruptcy?
It seems like there's a massive sell off of bonds at this time, such as the municipal bond listed here, for Detroit, Michigan:
MunicipalBonds.com – DETROIT MICHIGAN SERIES A - 251093XY1
What ...
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Yield of a municipal bond with a sinking fund?
How do I calculate my expected return if I buy a municipal bond at a premium with a sinking fund feature?
For example, I'm looking at a bond with a coupon of 5.5%, maturing July 2015, with the ...
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Taxation of muni bond bought at a premium
Interest received from municipal bonds is generally tax-exempt at the federal level (and at state level if purchaser resides in the issuer states).
Conversely, does this mean that a purchaser cannot ...
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