Tax Free Investment
An assignment on tax free and tax saving investment.
Group 6 members:
Oduwole femi moses 09aa08565
Offoma ruby 09aa08566
Ofodile nnamdi 09aa08567
Ogbebor iyayi evans 09aa08568
Ogodeton Kelvin 09aa08569
Ogubanjo oluwatobi 09aa08570
Ogunfuye oluwayomi 09aa08571
Ogunnbi eniola 09aa08572
Ogunjemilusi olorunfemi 09aa08573 Ojesanmi temitope 09aa08574
Okafor chioma 09aa08575
Okagbuzo uwaremeo 09aa08576
Okocha desmond 09aa08577
GROUP LEADER:
OGODETON KELVIN OKIEMUTE.
Tax-Free Investments:
Federal, state, and local governments pay bond interest that is partly or fully tax free.
Munis is a catch-all term for municipal bonds sold by state and local governments. The interest munis pay is generally exempt from federal tax and is usually exempt from state and local taxes for residents of the locality where the bond is issued. If you sell munis for a profit, however, you may owe capital gains tax. And, in some cases, the interest may be subject to the alternative minimum tax (AMT).
Municipal bonds, like other investments, have specific advantages but also carry certain risks. If interest rate on newer bonds is higher than the rate on the bonds you own, you might have to sell for less than par value if you sell before maturity.
Tax-free bonds that pay the highest interest tend to be issued by governments with low credit ratings. That means the issuers have an increased potential to default. That could mean your losing interest payments or return of principal or both. Financial advisers suggest sticking to highly rated bonds unless you're ready to take this risk. Some mutual funds, including some money market funds, invest only in tax-exempt bonds. That may be an alternative to buying individual munis. Remember, though, that because each fund owns a number of bonds, there's not a fixed interest rate or a maturity date. Nor does a fund promise to return your principal.
TREASURY OFFERINGS
Investment earnings on
Group 6 members:
Oduwole femi moses 09aa08565
Offoma ruby 09aa08566
Ofodile nnamdi 09aa08567
Ogbebor iyayi evans 09aa08568
Ogodeton Kelvin 09aa08569
Ogubanjo oluwatobi 09aa08570
Ogunfuye oluwayomi 09aa08571
Ogunnbi eniola 09aa08572
Ogunjemilusi olorunfemi 09aa08573 Ojesanmi temitope 09aa08574
Okafor chioma 09aa08575
Okagbuzo uwaremeo 09aa08576
Okocha desmond 09aa08577
GROUP LEADER:
OGODETON KELVIN OKIEMUTE.
Tax-Free Investments:
Federal, state, and local governments pay bond interest that is partly or fully tax free.
Munis is a catch-all term for municipal bonds sold by state and local governments. The interest munis pay is generally exempt from federal tax and is usually exempt from state and local taxes for residents of the locality where the bond is issued. If you sell munis for a profit, however, you may owe capital gains tax. And, in some cases, the interest may be subject to the alternative minimum tax (AMT).
Municipal bonds, like other investments, have specific advantages but also carry certain risks. If interest rate on newer bonds is higher than the rate on the bonds you own, you might have to sell for less than par value if you sell before maturity.
Tax-free bonds that pay the highest interest tend to be issued by governments with low credit ratings. That means the issuers have an increased potential to default. That could mean your losing interest payments or return of principal or both. Financial advisers suggest sticking to highly rated bonds unless you're ready to take this risk. Some mutual funds, including some money market funds, invest only in tax-exempt bonds. That may be an alternative to buying individual munis. Remember, though, that because each fund owns a number of bonds, there's not a fixed interest rate or a maturity date. Nor does a fund promise to return your principal.
TREASURY OFFERINGS
Investment earnings on