Reply To: Market Discount of Municipal Bond

Home Fairmark Forum Taxation of Investments Market Discount of Municipal Bond Reply To: Market Discount of Municipal Bond

#74560
3plustitanium
Participant

I thought that, if the market discount is less than the de minimus amount, it is still taxed, but at the capital gains rate. If market discount is more than the de minimus amount, it’s taxed as ordinary income. Is that not correct?