12. Taxation and Fixed Income Investments

In this section

• 12.1 Tax Treatment of Interest Income
  • Federal Income Tax Considerations for Bonds and Fixed Income Securities
    Explore the federal income tax considerations for bonds and fixed income securities, including the taxation of interest income, discounts, and premiums.
  • State and Local Tax Implications on Bond Interest Income
    Explore the complexities of state and local tax implications on bond interest income, including exemptions for U.S. Treasury securities and variations in municipal bond taxation.
• 12.2 Tax-Exempt Bonds
  • Municipal Securities: Tax Advantages and Investment Strategies
    Explore the tax benefits and investment strategies of municipal securities, a key component of fixed income portfolios.
  • Private Activity Bonds and AMT: Understanding Tax Implications for High-Income Investors
    Explore the intricacies of Private Activity Bonds and their relationship with the Alternative Minimum Tax (AMT) in this comprehensive guide.
• 12.3 Original Issue Discount (OID) and Market Discount Bonds
  • Taxation of OID Bonds: Understanding Original Issue Discount Bonds and Their Tax Implications
    Explore the taxation of Original Issue Discount (OID) bonds, including the calculation of OID for zero-coupon bonds, and how the discount must be amortized over the bond's life as interest income.
  • Market Discount Rules: Understanding Tax Implications on Bonds
    Explore the intricacies of Market Discount Rules, focusing on the taxation of bonds purchased below their adjusted issue price. Learn how market discount is treated as ordinary income and discover practical examples and calculations.
• 12.4 Capital Gains and Losses
  • Capital Gains Taxation: Short-Term vs. Long-Term for Bonds
    Explore the taxation of short-term and long-term capital gains on bonds, including calculation methods, tax implications, and practical examples.
  • Tax Efficiency in Bond Investing
    Learn strategies for enhancing tax efficiency in bond investing, including tax-advantaged accounts, tax-loss harvesting, and investing in tax-exempt securities.
• 12.5 Taxable Equivalent Yield Calculations
  • Taxable Equivalent Yield: Comparing Taxable and Tax-Exempt Bonds
    Explore the intricacies of comparing taxable and tax-exempt bonds using the Taxable Equivalent Yield formula. Understand how tax considerations influence bond investment decisions.
  • Taxable Equivalent Yield: Impact on Investment Decisions
    Explore how taxation influences bond investment decisions, focusing on after-tax yield and the importance of considering current and future tax rates.