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Definition of 'Double Exempt'
The status accorded to municipal bonds for which interest is not subject to taxation at either the federal or state level. In general, most states do not tax residents on interest income arising from tax-exempt bonds issued by that state, its agencies, its cities or other political entities. However, virtually all states tax individuals on interest from bonds issued out-of-state, although those bonds remain exempt from federal taxes.
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Investopedia explains 'Double Exempt'
Municipal bonds, including those for which the interest is not taxable at the state or local level, are attractive to taxpayers who wish to minimize or avoid taxes on their interest income. These securities often pay a commensurately lower interest rate than taxable issues such as corporate bonds, although depending on one's tax bracket and comparative yields, they may sometimes yield more on an after-tax basis. Double exempt bond income can be an AMT preference item in some cases.
From a tax perspective, this treatment often makes bonds issued in one's home state more attractive than those issued out-of-state. Some interest from municipal securities is also exempt from local income tax in jurisdictions where such taxes apply, technically making them triple tax-exempt.
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Search results for 'Double Exempt'
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http://www.investopedia.com/articles/04/072804.asp
... from federal income tax, the income from munis may also be exempt from state ... If the
investor receives this double tax exemption, he or she uses a revised ...
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http://www.investopedia.com/articles/bonds/08/tax-equivalent-yield.asp
... the $82,000 or $164,000 limits, you can't be sure municipal bond income is tax-exempt,
or that your TEY calculation is accurate without double-checking or ...
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http://www.investopedia.com/articles/retirement/03/081303.asp
... remove the excess amount in a timely manner could result in double taxation of ... IRA
custodian/trustee may report your IRA distribution that is exempt from the 10 ...
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http://www.investopedia.com/articles/professionaleducation/06/Series63.asp
... Transactions with institutions almost always are exempt transactions. ... Many of them
have been reported to use a double-negative structure and are often long and ...
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http://www.investopedia.com/articles/professionaleducation/07/Series_7_municipal.asp
... Minus: Self-supporting debt (double-barreled bonds). Equals: Net overall debt. Economic ...
Act exemption, which states that municipal issuers are exempt from filing ...
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http://www.investopedia.com/articles/06/JGTRRADividends.asp
... Any corporation that is exempt from federal income tax; Securities owned by an employee
stock ... Corporate CEOs have long been plagued by this double taxation. ...
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http://www.investopedia.com/articles/tax/11/tax-tips-for-retirement.asp
... $7,000 in taxable interest/dividends and $15,000 in tax-exempt interest from ... Double
checking your return for errors and avoiding excessive deductions could ...
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http://www.investopedia.com/articles/tax/09/generation-skipping-transfer-tax-gst.asp
... Married couples can double these amounts to determine the exempt portion
of their GST. Create a generation-skipping transfer trust. ...
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http://www.investopedia.com/articles/taxes/11/seven-common-tax-mistakes.asp
... You can avoid making mathematical mistakes by double checking all of your numbers
with a ... Filing late does not exempt you from having to pay taxes and fees on ...
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http://www.investopedia.com/exam-guide/series-7/municipal-securities/special-munis.asp
... Double-barreled bond: Two separate entities make a financial commitment. ... the difference
between the issue price and par is treated as tax-exempt income rather ...
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