Tax exempt bond premium tax treatment

    • [DOC File]FIXED INCOME SECURITIES

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      The municipal bond interest is exempt from Federal and in many cases state taxes. We will discuss the kinds of investors that are attracted to municipal bonds and how this effects the municipal bond yield curve. In the next lecture (TAXES TWO) we look at tax timing options. Marginal Tax Rate and Municipal Bond Market. Marginal Tax Rate.

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    • [DOC File]HUD | HUD.gov / U.S. Department of Housing and Urban ...

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      3.8 Tax Exempt Bond-Financed Projects. IRS Code 142(d) Projects. Projects financed with the proceeds from tax-exempt bonds pursuant to the Internal Revenue Code, Section 142(d), must meet minimum low income occupancy restrictions to exempt the earned interest income from federal income taxation.

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    • [DOC File]Iowa Finance Authority - Novogradac

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      SECTION 3. TAX-EXEMPT BOND FINANCED PROJECTS. Under IRC Section 42(h)(4), Projects financed with tax-exempt bonds may be entitled to 30% present value Tax Credits not subject to the State Ceiling and without the need to participate in the competitive round. The requirements for a Project using tax-exempt bond financing are as follows:

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    • [DOC File]Available Reports

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      17 NCAC 05C .1402 TAX EXEMPT BONDS. The amount of premium paid upon the purchase of a tax exempt bond is amortized over the life of the bond. Amortization for the taxable year is accomplished by reducing the original cost of the bond by a portion of the premium paid, with no deduction against net income for the year.

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    • [DOC File]NOTES ON DEBT MANAGEMENT

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      Purchase price (of a tax exempt bond) price to the first buyer who does not include a bond house, broker, underwriter or intermediary. Purchase price (of an investment) – is the market price, w/c is the price at w/c a willing purchaser acquires from a willing seller w/o consideration of arbitrage. Chapter 2 – Arbitrage Restriction Requirements

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    • [DOC File]FEDERAL INCOME TAX ISSUES RELATED TO

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      Further, certain defeasances of a tax-exempt bond are not significant modifications. Reg. § 1.1001-3(e)(5)(ii)(B)(1). A modification of a debt instrument that results in an instrument or property right that is not debt for federal income tax purposes is a significant modification. Reg. § 1.1001-3(e)(5)(i).

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    • [DOC File]Trexler

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      XV. Tax-Exempt Bonds. There is a lower interest rate than taxable bond, but the interest from them is excluded from income, so people invest in them. §103 – may exclude interest from certain state, municipal, and other bonds. Tax-exempt bond Taxable bond. $1000 bond. $1000 bond. 7% interest rate. 10% interest rate.

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    • [DOC File]1) The term structure of interest rates is

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      the bond’s relative tax treatment. all of the above. only (a) and (b) of the above. Question Status: Previous Edition. Three factors explain the risk structure of interest rates: liquidity, default risk, and the income tax treatment of a security. maturity, default risk, and the income tax treatment of a security.

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    • [DOC File]FEDERAL INCOME TAXATION - NYU Law

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      If corp. bond int. rate 10% on $10,000 bond, $1,000 int. minus $280 tax, so after-tax inc. $720. Tax-exempt bond rate needs be 7.2% so that after-tax inc. $720 and T be indifferent between the 2 bonds.-T in 15% bracket: Tax on corp. bond be $150 so after-tax inc. $850.

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    • Chapter 7

      bonds is exempt from state income taxes while dividends are subject to state income taxes. ... Why would taxpayers generally prefer the tax treatment of market discount to the treatment of original issue discount on corporate bonds? ... If David elects to amortize the $2,000 bond premium, he will use the constant yield method (similar to the .

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