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URL:  http://boards.fool.com/matured-inherited-muni-bond-30306556.aspx

Subject:  Matured Inherited Muni Bond Date:  10/8/2012  11:41 AM
Author:  vkg Number:  116763 of 121478

When inherited, the value of a municipal bond was slightly greater than the face value. The bond matured during 2012, and paid the face value.

Does the higher inherited basis create a capital loss when the bond matures? I have the impression that such "losses" aren't deductible for tax exempt bonds, but that is from a brief conversation with my father's tax preparer several years ago. I may not have completely understood what was being said.
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