is bond interest tax deductible?

Answer 1

Are you talking about paying it or receiving it? If paying it, then yes it's deductible to the company who issued the bonds. If receiving it, then no it's not tax deductible, and is actually taxable depending on what type of bond. U.S. savings bonds, Treasury bills, and other U.S. government obligations are taxable federally but not on the state level. Municipal obligations are not taxed federally, and if the municipal obligations are issued by the state you live in, they aren't taxed by your state. If the municipal obligations are issued by a state other than where you live, they are taxable on your state tax return, although there is a court case out there that may change or force changing how states tax or don't tax municipal obligation interest.

Answer 2

Not sure just what you're asking about "deductible". Are you talking about the issuer of the bonds, or the holder? If a company issues bonds, the tax they pay out to the holders is tax deductible for them.

There are many different types of bonds. Some are taxable to the holder, some aren't.

US savings bond interest is taxable at the federal level, but not on your state income tax.

Interest on tax-free bonds, issued by government bodies like municipalities, are generally not taxable.

Interest on other kinds of bonds is generally taxable at both federal and state level.

Answer 3

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RE:
is bond interest tax deductible?

Answer 4

If you are a company paying interest on bonds you've issued, yes it's deductible.

If you are a holder of bonds, the tax treatment depends upon the bond. US Savings Bonds are taxable at the Federal level but not the state level. Municipal bonds are not taxable. Ordinary corporate bonds are fully taxable.

Answer 5

Bond interest is never tax deductible.

Municipal bond interest is free of federal tax and if issued in the state where you live, state tax free.

Federal bond interest (treasury bonds, notes and bills) is subject to federal tax but not subject to state tax.

Answer 6

Interest recieved on bonds is generally taxable. But with some government savings bonds, if you spend the money on higher education expenses, the interest may not be taxable.

Answer 7

You all wrong. The Bond interest is tax deductible. It is part of the corporate expense when the interest is paid to the bond holders.

The Bond holders, on the other hand, have to pay tax on the interest earned.

Answer 8

No, you must report it as income on Schedual B, and that transfers to Line 8, as part of your income.

Answer 9

no it's taxable