$110.00 
Learn more
Submitted By: William
Answered: November 4, 2014 8:30 am
Answered: November 4, 2014 8:30 am
I sold municipal bonds at a loss this year. Is the loss deductible?
While the interest on municipal bonds is tax free, this doesn’t mean gain or loss on the sale of bonds is excludable from gross income. Gain or loss on the sale of municipal bonds is figured in the same way as for any other asset. What’s more, municipal bonds are includible in a decedent’s gross estate for estate tax purposes.
advertisement
Featured Books
Tax Glossary
Installment sale
A sale of property that allows for tax deferment if at least one payment is received after the end of the tax year in which the sale occurs. The installment method does not apply to year-end sales of publicly traded securities. Dealers may not use the installment method. Investors with very large installment balances could face a special tax.
