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14 Cards in this Set
- Front
- Back
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Municipal Bond Mutual Funds & Municipal Unit Investment Trust (UTIs)
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Federally Tax-Free dividends to Shareholders
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Corporate Bond Funds
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Dividends are taxable as ordinary income during year investor receives them.
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Stock Funds
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Dividends taxed at 15%
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Long-Term Capital Gains
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Taxed @ 15%
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Short-Term Capital Gains
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Taxed as Ordinary Income.
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Fannie Mae/Freddie Mac (Corp)
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Taxable at ALL LEVELS
Federal State Local |
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US Gov't Securites
(T-Bills/Notes/Bonds) |
Exempt from State and Local
Federally Taxed |
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Mortgage-Backed Securities
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Taxed at ALL LEVELS
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Dividend Income
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Taxed at max 15% (as long as customer has satisfied a 61-day holding period)
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Municipal Securites
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Exempt from Federal Taxes
Interest from muni bond/notes are NOT taxable for residents of the state the bond is issued. |
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Wash Sale Rule
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Investor sells a security at a loss & purchases the same security within 30 days before or after the trade date establishing a loss.
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Avoiding Wash Sales
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Change 2 of the 3:
Issuer Coupon Rate Maturity |
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Accretion
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Process of adjusting the cost basis back up to Par.
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Inherited Securities
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A person dies and leaves securities to heirs, the cost basis to the recipients is the fair market value on the date of the owner's Death.
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