Tax-exempt income
Definition:
Dividends and interest not subject to federal and, in some cases, state and local income taxes. ...
Tax-exempt income fund
A mutual fund that seeks income that is exempt from federal and, in some cases, state and local income taxes.
Tax-exempt money market fund
A money market fund that invests in short-term tax-exempt municipal securities.
Tax-Exempt Income (business term)
municipal bond
Taxable Equivalent Yield (in banking)
Nontaxable Dividends (business term)
Tax-Exempt Money Market Fund (finance term)
Disqualified Person (Tax-Exempt Organization) (insurance term) ...
Tax-exempt income
Dividends and interest not subject to federal and, in some cases, state and local income taxes.
Tax-exempt income fund
A mutual fund that seeks income that is exempt from federal and, in some cases, state and local income taxes.
While the interest disallowance rule is broad in scope, it does not automatically deny an interest deduction whenever a taxpayer simultaneously maintains debt and earns tax-exempt income.
One of the primary reasons municipal bonds are considered separately from other types of bonds is their special ability to provide tax-exempt income.
Munis generally pay interest at a lower rate than similarly rated corporate bonds of the same term. However, they appeal to investors in the highest tax brackets, who may benefit most from the tax-exempt income.
 See also: Interest, Securities, Income, Issue, Bonds
  
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