Jason received a check of $600 from the bonds he owns. He is subject to a...

Jason received a check of $600 from the bonds he owns. He is subject to a 30% tax rate. What is the tax on this investment income?

Expert Solution

The tax implications of individual bonds are fairly straightforward: If an investor owns bonds that generate taxable income (which covers almost all bonds except for municipal bonds, in general), he or she is taxed on that income in the year it's received.

Interest income generated by municipal bonds is generally not subject to federal taxes, and may be tax-exempt at the state and local level as well, if the bonds were issued by the state in which you live

Tax on his investment income therefore

30/100×600= $ 180

jeff jeffy answered 2 years ago

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