taxable loss with municipal bonds | Ed Slott and Company, LLC

taxable loss with municipal bonds

I have a client that has municipal bonds. Invested 75,000 current value 68,000. Is this a taxable loss?

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.
 

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