Skip to main content
No. of Recommendations: 0
Capital gains are federally taxed whether from a muni bond fund or any other asset. However the rules can vary according to state when it comes to state tax. For wxample in Maryland (where I live) capital gains earned on the sale of Maryland munis (or even a bond fund of Maryland munis) are subtracted off to arrive at state taxable income. This is true although the gains are taxed by IRS. However in Maryland for state tax purposes you can't subtract off gains made on other (out-of-state) muni bonds.
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.