Submitted by roy@thewilliams... on Tue, 2009-04-28 14:17 Forums: IRA Discussion ForumI have a client that has municipal bonds. Invested 75,000 current value 68,000. Is this a taxable loss? Re: taxable loss with municipal bonds Permalink Submitted by firstname.lastname@example.org on Wed, 2009-04-29 13:09 If you buy municipal bonds at a premium and hold them to maturity you do not have a loss. If you buy municipal bonds at a premium and they are sold or called before maturity, you could have a partial loss but the premium must be amortized from the purchase date to the sale date. You should post this question on a tax forum instead of an IRA forum.