Federal tax treatment of State and local securities.
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Federal tax treatment of State and local securities.

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Published by Brookings Institution .
Written in English



  • United States.


  • Securities, Tax-exempt -- United States.,
  • Income tax -- United States.

Book details:

Edition Notes

SeriesStudies of government finance
ContributionsMeltzer, Allan H., joint author.
LC ClassificationsHJ4653.P83 O8
The Physical Object
Pagination146 p.
Number of Pages146
ID Numbers
Open LibraryOL5882843M
LC Control Number63014338

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Income from bonds issued by the federal government and its agencies, including Treasury securities, is generally exempt from state and local taxes.. If you own a bond mutual fund or ETF (exchange-traded fund), you'll need to calculate the amount of income you earned from the fund's government bond holdings (if any) in order to take advantage of this exemption when you file your taxes—it won.   State and Local Government Series Securities Overview. The State and Local Government Series (SLGS) securities program was established in as the result of federal legislation enacted in which restricted state and local governments from earning arbitrage profits by investing bond proceeds in higher yielding investments.   Make sure you have the forms you need to file your taxes. Learn about recalls and delays of tax forms, instructions, and publications caused by a new law enacted in December Find out what to do if you don’t get your W2 on time, and learn how to request copies of your previous tax . Book to Tax Terms: Book Accounting: Accounting used on a company’s audited financial statements. Balance Sheets (assets, liabilities and equity) and income statements should be reported using U.S. GAAP. Tax Accounting: Income and deductions reported on tax return in accordance with the rules in the I.R.C. and attending regulations.

Capital gains on municipal securities are taxable at the Federal, State and Local levels. Only the interest income from municipal securities is exempt from Federal income tax; it is still subject to State and Local tax unless the bond is purchased by a resident of that State. State and local taxation (generally referred to herein simply as "state taxation") is a complex area that, at times, resembles the federal income tax but also can depart sharply from any resemblance to federal tax principles. In the context of pass-through entities, several fundamental and unique characteristics of state taxation introduce. Corporations and individual taxpayers who itemize can deduct charitable contributions to (c)(3) organizations. Many nonprofit institutions are exempt from paying federal income tax, but taxpayers may deduct donations to organizations set up under Internal Revenue Code section (c)(3) on their. a. Allowing a Federal income tax deduction for state and local sales taxes. b. Allowance of a credit for child care expenses. c. Allowing accelerated amortization for the cost of installing pollution control facilities. d. Allowing excess capital losses to be carried over .

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