Basis of tax-exempt bonds.: An article from: The Tax Adviser

This digital document is an article from The Tax Adviser, published by American Institute of CPA's on September 1, 1994. The length of the article is 918 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: The IRS has moved away from the reasoning that gain on the early redemption of tax-exempt bonds is tax-exempt interest income and now believes that tax-exempt bonds should be treated the same as original issue discount bonds when the intent to redeem early can be shown. Of course, gain realized on the tax-exempt bond would still be exempt from taxation. Guidance has not been clearly established on what constitutes evidence of the intent to redeem early. The willingness to redeem in response to changes in interest rates alone does not establish the requisite intent.

Citation Details
Title: Basis of tax-exempt bonds.
Author: James M. Lynch
Publication:The Tax Adviser (Magazine/Journal)
Date: September 1, 1994
Publisher: American Institute of CPA's
Volume: 25 Issue: n9 Page: 556(2)

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