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Other types of muni bonds

Q

As a resident of New York state what other kinds of munis can I buy, i.e. national, territories? Also, what is a national muni?

J.H., New York

A

James A. Klotz responds:

Bonds issued by U.S. Territories such as Puerto Rico, Guam and the U.S. Virgin Islands are exempt from all state taxes.

The term “national muni” usually refers to a municipal bond fund that invests in bonds issued throughout the country.

Keep in mind that any income received from this fund produced from states other than yours will be subject to New York state income tax.

Jan 25, 2011

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