Why Are the Tax Implications of Investing in Bonds More

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The Answer is Common stock is pretty straight forward when it comes to paying taxes on their returns.With stock,you either have a capital gain or loss and possibly dividend income,both of which are obviously taxable sources of income.With the many different types of bonds,some are taxable bonds and,similar to stocks,you either have a capital gain or loss and interest income,all of which are obviously taxable.However,with U.S.Treasuries,their may be tax liabilities on certain sources of income,either capital gains or rate adjustments with TIPS.Municipal bonds are similar except it also depends on where you live and what State issued the bonds.There may not be a Federal tax liability but there may be different State tax liabilities.

Why Are the Tax Implications of Investing in Bonds More

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