Municipal Bond Forum
Home > Municipal Bond Forum > AMT >
Interest and AMT taxpayers
Q
Why are some tax-free municipal bonds subjected to the Alternate Minimum Tax? Shouldn’t they all be tax free?
A
James A. Klotz responds:
The interest from municipal bonds, issued for “private purposes” — such as airports, housing, etc. — is tax-free for conventional taxpayers, but taxable for AMT taxpayers.
Start here.
Do you have specific criteria for bonds you’re looking for? Let us know and we’ll e-mail you bonds that fit your needs. There is no charge for this service.
The responses provided in this forum are meant to address specific questions posed by investors about their municipal bonds and to provide market insight for our general audience. Please note, your investments, objectives, results and experience may differ significantly. Our answers and any potential strategies discussed should not be construed as a solicitation to buy nor sell any security or investment product. All investing entails risk.