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Investors who earn interest income from hospital revenue bonds enjoy tax exemption from federal income taxes.
Municipal revenue bonds taxation. Municipal bond funds provide investors with interest that is exempt from federal income taxes. This income may also be exempt from state and local taxes for investors who reside in the issuing state or locality. Revenue bonds are a class of municipal bond issued to fund public projects which then repay investors from the income created by that project. For example a new york city bond could be triple tax free.
Interest income on revenue bonds issued in other states may still be taxable. The interest from these bonds is tax free at the federal state and local levels as long as investors reside in the same state or municipality as the issuers. A municipal bond also known as a muni is debt security used to fund capital expenditures for a county municipality or state. Interest income from hospital revenue bonds may also be exempted from state income taxes for revenues earned within the state.
Taxation of hospital revenue bond.
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