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

#74573
Kaye Thomas
Moderator

Essentially correct. There’s no specific rule taxing de minimis market discount as capital gain, but the discount means you have less basis when you report a sale or redemption. That means you’ll have taxable capital gain to the extent you recover this amount.