No. of Recommendations: 3
I think I remember it being stated here a few months back that capital gains on muni bonds are taxable (even if the interest is non-taxable). Correct?

If so, would the converse be true? Can muni bond capital losses be used to offset capital gains elsewhere? I ask because in todays market there are tons of even long dated muni bonds selling well above par.

In general, gains are taxable and losses are deductible. But as with many tax issues, it isn't that simple -- in fact, it can get really complicated. Here's a good description of all the ins and outs:

You'll want to look especially at the "Bond Premium" section since the bonds you want to buy are above par.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.