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Revision as of 14:39, 14 September 2026

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If buy a national muni bond fund your interest income will be free of federal taxation (but not state income taxes). In case you buy scenario muni bond fund that owns bonds from the house state this interest income will be "double-tax free" for both federal while stating income taxing. Now we calculate if you have any taxes due. Assuming for at the time that not any other income exists, we calculate taxable income using the profit from the business ($20,000) and subtract fantastic deduction (which is $5,950 for 2012) less the exemption deduction (which is $3,800 for 2012).

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