Tax-exempt Bond
Bond whose interest is free of federal, state, or local tax in the state of the issuer. It is typically a municipal bond of estate or county agency. For example, a New York City resident does not pay federal, state, or city tax on the interest received from a New York City obligation. It is triple tax-free though this is not necessarily the case with other states. The return on a tax-exempt bond is equivalent to a higher return on a taxable corporate bond because of the tax savings. The dollar advantage of a tax-exempt security increases as the tax rate rises. Assume a taxpayer in the 31% tax bracket receives 5% on a tax-exempt bond. The equivalent taxable yield on a corporate bond is 7.2%(5%/.69).
Popular Real Estate Terms
Funds of property bestowed upon a person or an institution. The income is used to serve a specific purpose for which the endowment was intended. ...
Holding and controlling property. It includes not only custody but also having some legal right. An example is occupying real property and enjoying its benefits. ...
Transfer of real estate from one taxpayer to another that are exempt from federal income taxes. An example is an exchange of property in which ownership of transferred real estate is still ...
Interest is due on a loan only if a particular circumstance occurs. ...
Uniform charge for transportation and delivery of household items to a homeowner within a particular locality. ...
Costs incurred in connection with real property that increase its cost basis or worth, such as a new roof, an additional room, or paneling a room. ...
A right or interest in property held by a third party, which often limits the use and diminishes the value of the property, but usually does not prevent the transferring of title. The more ...
A judicially approved plan in which a persons obligations are paid over three years. It is an arrangement for the repayment of debts which permits a credit user in severe financial straits ...
A two-story house characterized by a balcony spanning the width of the second story. Monterey architecture was adopted from the early California Spanish period. ...
Have a question or comment?
We're here to help.