Rule 18 of 32 in this unit2.1.2

2.1.2 Debt Instruments

SIE outline 2.1.2

Exempt Has Exceptions

Private-activity bonds can be caught. By the alternative minimum tax. And some municipal bonds are taxable outright. NOT a property of every municipal bond.

The method for this kind of question
  1. Municipal rules return in Section 4

Now answer

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