You are a very brave man!If you're talking about what Pub 550 is referring to as "Short-term government obligations", then yes. So for tax purposes, it matters.Thanks !!
I understand now that short term bond is the bonds matured within 1 yr from issue date. it is not the bonds matured within 1yr from purchase date. Correct?
But generally I pay no attention to what the maturity date was when issued. I just buy whatever looks good at the desired maturity. Might be a bill, note or bond if less than one year left to maturity, but couldn't be a bill if more then one year left to maturity.
It is tax time and we're seeing several threads with questions regarding various states' taxation of accrued market discounts of treasury notes.
I am very comfortable treating an AMD as tax-exempt in California and I think you are, too. However, we know that people in NC can't do that. There are residents of other states who are struggling to figure out how their respective states handle the accrued market discount. There have been some lively debates.
So perhaps I might add a caveat to your statement above. "I just buy whatever looks good at the desired maturity" . . . "as long as I understand the tax ramifications in my state when it comes to any market discount."
Statistics: Posted by Artsdoctor — Sat Mar 02, 2024 5:33 pm — Replies 917 — Views 133042