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Interest on US Treasuries is taxed as ordinary income. It is also exempt from state and city, if applicable, income taxes.
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What are US treasuries?
US treasuries are issued by the federal government and consist of Treasury Bills, Treasury Notes, and Treasury Bonds. The proceeds from these securities are used to fund government programs, and the interest earned by the purchaser of the treasuries is exempt from state and local taxes. US treasuries are considered to be a very conservative type investment with low returns based on the relatively low amount of risk assumed.
Are US citizens taxed on how much they have in their savings account or taxed just on the amount of interest they earn from the savings account?
They are only taxed on the interest. The money in the account should have already had its tax paid as income.
What are pre-refunded municipal bonds?
When a municipality has sufficient funds but cannot call the bond before the maturity, it can buy Treasuries, place them in an escrow account, and use the interest proceeds to pay the muni interest. Such process makes the pre-res almost as safe as US Treasuries, but tax-free. At the maturity of the munis a municipality will sell Treasuries and buy back the muni bonds with the proceeds.
What are pre refunded municipal bonds?
When a municipality has sufficient funds but cannot call the bond before the maturity, it can buy Treasuries, place them in an escrow account, and use the interest proceeds to pay the muni interest. Such process makes the pre-res almost as safe as US Treasuries, but tax-free. At the maturity of the munis a municipality will sell Treasuries and buy back the muni bonds with the proceeds.
How is the interest on municipal bonds taxed?
In most cases interest on a Muni (municipal bond) is not taxed
Is there an income tax on treasuries?
Interest payments on Treasuries are subject to federal income tax, but not state income tax. If you buy and sell Treasuries, any capital gains are also subject to federal and usually state income taxes.
Where can you invest with capital guaranteed but at interest?
US Treasuries are a safe bet, so long as you stay out of the 30-year market. That thing fluctuates. http://www.fdkfinancial.com/
What kinds of penalties are attached to zero coupon bonds if withdrawls are made early?
Many zero-coupon bonds (e.g. US Treasuries) penalize for early redemption through forfeiture of interest for a specified period of time.
What are treasuries?
Treasuries are things you treasure for the rest of your life that is valueable to you and that you love
Most of the currency or currency-related paper in circulation in the US is in the form of what?
US Treasuries. Bonds issued by the US Governemnt representing a 'promise to pay'.
What is the ONE factor which is not present in US Treasuries but is present in all other bond types?
Call option
How is interest from a mortgage taxed?
If you received interest from a mortgage loan you made, it is treated as ordinary income. List it on Schedule B.
