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Author: mjpersely One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121182  
Subject: Specified Private Activity Bond Interest? Date: 3/3/2008 9:17 AM
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Hello,

I received a 1099-INT for 2007 and under Box 9 it says "Specified Private Activity Bond Interest" and the amount. What do I do with this amount, i.e. where does it go on the 1040? At first I thought that maybe it goes on Line #9, but the bond is held by my partnership (not in my name)so is there somewhere else this should go like on the 1065?

Any advice would be appreciated. The amount is small, but I am sure that it is supposed to be reported somewhere.
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Author: dusty2004 Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 99182 of 121182
Subject: Re: Specified Private Activity Bond Interest? Date: 3/3/2008 9:25 AM
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Interest on a private activity bond that is a qualified bond is tax exempt. A qualified bond is an exempt-facility bond (including an enterprise zone facility bond, a New York Liberty bond, or a Gulf Opportunity Zone Bond treated as an exempt facility bond), qualified student loan bond, qualified small issue bond (including a tribal manufacturing facility bond), qualified redevelopment bond, qualified mortgage bond (including a Gulf Opportunity Zone Bond treated as a qualified mortgage bond), qualified veterans' mortgage bond, or qualified 501(c)(3) bond (a bond issued for the benefit of certain tax-exempt organizations).

Interest that you receive on these tax-exempt bonds (except qualified 501(c)(3) bonds, New York Liberty bonds, and Gulf Opportunity Zone Bonds), if issued after August 7, 1986, generally is a “tax preference item” and may be subject to the alternative minimum tax. See Form 6251 and its instructions for more information.

Dusty

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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 99185 of 121182
Subject: Re: Specified Private Activity Bond Interest? Date: 3/3/2008 10:11 AM
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I received a 1099-INT for 2007 and under Box 9 it says "Specified Private Activity Bond Interest" and the amount. What do I do with this amount, i.e. where does it go on the 1040? At first I thought that maybe it goes on Line #9, but the bond is held by my partnership (not in my name)so is there somewhere else this should go like on the 1065?

Any advice would be appreciated. The amount is small, but I am sure that it is supposed to be reported somewhere.


It gets entered on Schedule K, line 17f. The allocation to the partners is reported on Schedule K-1, line 17, code "F". This entry goes to Form 6251, line 11 on your individual income tax return.

Ira

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Author: mjpersely One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 99189 of 121182
Subject: Re: Specified Private Activity Bond Interest? Date: 3/3/2008 12:11 PM
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Thank you for your detailed and timely responses. Much appreciated!

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Author: minkoffcpa Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 99898 of 121182
Subject: Re: Specified Private Activity Bond Interest? Date: 3/30/2008 9:22 PM
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Specified Private Activity Bond Interest is tax-exempt interest that must be included in income only for Alternative Minimum Tax purposes. So, you won't pay regular income tax on the interest, but must be included on Line 11, Part 1 of IRS Form 6251 - Alternative Minimum Tax-Individuals.

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Author: mjpersely One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 101139 of 121182
Subject: Re: Specified Private Activity Bond Interest? Date: 6/23/2008 12:40 PM
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Thank you for your post.

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