when you buy bonds or securities from the gov't or private companies, do you have to pay tax?
2007-09-05 10:51:45 · 3 answers · asked by dark_armies 2 in Business & Finance ➔ Taxes ➔ United States
Corporate Bonds - Interest is Taxable to the Feds and the State
Treasury Securities - Interest is Taxable to the Feds but exempt from all state taxes.
2007-09-05 10:56:39 · answer #1 · answered by Wayne Z 7 · 0⤊ 0⤋
If you buy federal bonds or securities you will pay federal tax on the income from your investment.
If you buy state bonds or securities you will not pay federal tax. You may or may not pay state tax.
Income from bonds or securities from private companies are taxed by both federal and state governments.
2007-09-05 10:57:37 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋
Not when you buy them. If you make a profit when you sell them, you'd pay tax then on the profit.
2007-09-05 13:23:55 · answer #3 · answered by Judy 7 · 0⤊ 0⤋