The vast majority of bonds on the market are taxable, including all corporate bonds. Somemunicipal bonds, state bonds, and other governmental bonds may also be subject to taxes, even though they are traditionally thought of as being tax free. The standard of whether the bond is tax free or ...
What is a bond? In simple terms, bonds are a form of debt. Just as you might take out a loan to buy a car or a house, bonds are a way for governments to borrow money to pay for infrastructure projects, the military and other services, or for corporations to fund their operations,...
Independent contractors and others who receive income from sources other than an employer can expect to receive a 1099 instead of a W-2. So, what is a 1099, and how do you use it to file your taxes? Here's everything you need to know about Form 1099, inc
Not all income from municipal bond funds is tax-free, though. Some interest income may be subject to the Alternative Minimum Tax. Plus, when a fund sells some of its underlying bonds, it can generate a distribution that fund shareholders could owe tax on. When you sell or exchange shares ...
Although municipal bond yields are generally lower than taxable bond fund yields, some investors in higher tax brackets may find they have a higher after-tax yield from a tax-free municipal bond fund investment instead of a taxable bond fund investment. Tax-free investments are usually not ...
What Is Local Volatility? What Are Strategic Bonds? What are Insured Municipal Bonds? What is a High-Yield Bond Index? What are High-Yield Municipal Bonds? What are Taxable Municipal Bonds? Discussion Comments WiseGeek, in your inbox Our latest articles, guides, and more, delivered daily. ...
What is a sinking fund? Managing amortization of bonds Do you have clients looking to issue bonds?Bondsare generally thought to be lower risk than stocks, which makes them a popular choice among many investors. And for companies issuing a bond, bond amortization can prove to be considerably be...
A big reason for the tax efficiency of ETFs is the vast majority are index funds, which typically trade less frequently than actively managed funds. Low turnover means fewer sales of stocks that have appreciated, generating fewer taxable capital gains. In addition, investors buy and sell ETF sh...
A bond fund is a mutual fund or an exchange-traded fund (ETF) that buys and sells debt instruments like government and corporate bonds. The primary goal of a bond fund is to generate monthly income for investors. For an investor, a bond fund is an alternative to buying individual bonds. ...
A taxable bond is a debt security (i.e., a bond) whose return to the investor is subject to taxes at the local, state, or federal level, or some combination thereof. An investor trying to decide whether to invest in a taxable bond ortax-exempt bondshould consider what they will have ...