are all municipal bonds tax exempt?

just wondering…seems like they are.

I think in the real world some aren’t (private placement stuff?). For the exam I think we can assume they are.

Far beyond the scope of this material, there are such things as taxable muni bonds. But for what we need to know, yes, muni bonds are always tax-exempt.

I’d agree. There are also cases where only certain states recognize various issues, or something along those lines. But that was level 1 or 2 stuff, not important here.

they have these build america munis now that are taxable. but for the exam, i think it’s safe to assume they are all tax exempt.

in canada as far as I know there is no such thing as a tax exempt muni

florinpop Wrote: ------------------------------------------------------- > in canada as far as I know there is no such thing > as a tax exempt muni That’s what happens in a socialist country… oh wait… Where can you go to avoid taxes these days??

the woods

US looks pretty socialist right now. I think it’s Contagion :slight_smile:

jeks Wrote: ------------------------------------------------------- > just wondering…seems like they are. Yes… most are, however, there is an entire class of munis that are not federally tax-exempt. Private activity bonds are issued by municipal or state entities in support of projects that the IRS does not deem eligible for exempt status. Funding a local sports stadium or airport expansion might be two examples. Such bonds may no longer be federally tax - exempt, but generally are still exempt in the issuing jurisdiction (in other words, the income might still be free from state and local taxes). As a result they can be attractive to certain investors.

Certain investors who are not subject to AMT…