Technical topics regarding tax preparation.
11-Jan-2020 10:11pm
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Do i have this correct re taxation of the recipient of the bond interest:
A taxable municipal bond is fully taxable, Fed and State, for both regular and AMT
Compared to a PAB that is exempt from regular Fed income tax but subject to Fed AMT.
For you California people, doesn't appear that CA personal AMT taxes PAB interest.
Deduction for Accrued interest, Paid interest, Inclusion of OID etc tax treatment would mirror the Fed or state tax treatment for the type of interest.
12-Jan-2020 11:19am
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What's a taxable municipal bond?
In general - interest from municipal bonds is exempt from regular tax and AMT. Interest on private activity bonds is exempt from regular tax but not AMT.
Most states do not tax interest on bonds from their state and US possessions.
12-Jan-2020 1:00pm
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12-Jan-2020 1:03pm
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Examples are sporting facilities and bonds to replenish a municipality's underfunded pension fund
Build America Bonds (BAB) were issued in 2010. The interest was subsidized by the federal government so they were not considered tax-free bonds for federal or state.
13-Jan-2020 12:00pm
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Unfortunately you may need to research each individual bond to find out. The original issuer statement should include a tax opinion. I've seen fed-taxable bonds from CA issuers that were exempt from CA tax.
19-Jan-2020 1:10am
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There was a 2 hour class on this very subject last May given by Mary Kay Foss thru the CA CPA Ed Foundation. The 121 page pdf of the course costs $40. Have to call CA CPA Society Ed Foundation to request. Webinar on demand version not online yet.
Reporting Income & Gain from Tax-Exempt Securities. Gives specific examples of different consolidated brokerage statements.
btw she's giving a two hour webinar Jan 22 2020 on the Retirement Penalties And Rollover Issues Webcast | 4193497C
https://www.calcpa.org/education/taxes-curriculum
24-Jan-2020 6:37pm
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how to calc the total and current OID acq premium on pre 1 1 17 tax-exempt bonds. Schwab gives the oid for both pre and post 1 1 17 tax-exempt bond but not the acq premSchwab gives the cusips of the post 12 31 16 tax-exempt bonds and the cusips for all the exempt bonds. .
24-Jan-2020 11:24pm
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Good summary of tax reporting bond premium and discount items. But doesn't give specific guidance on the differences in reporting assumptions for different brokerage firms.
https://www.tscpa.org/docs/default-sour ... f?sfvrsn=2
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