Announcement

Collapse
No announcement yet.

Tax bracket to choose corporate vs municipal bond for taxable act.

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • DSM
    replied
    @Zaphod: Super helpful!

     

    Leave a comment:


  • Zaphod
    replied
    Nice little calculator here

     

    https://funds.eatonvance.com/tax-equivalent-yield-calculator.php

    Leave a comment:


  • DSM
    replied
    Thank you so much!

     

    Leave a comment:


  • PhysicianOnFIRE
    replied
    That puts you in the 25% marginal federal income tax bracket + state if applicable. If the muni yields more than (25% + state tax) less than the normal fund, I guess you could use that math to guide you.

    But I would take the guesswork out by keeping bonds in tax deferred account(s). [And yes, I know WCI says bonds go in taxable]

    Leave a comment:


  • Peds
    replied

    Your marginal rate. Where the last dollar is taxed. Hint: you already calculated it.

    Leave a comment:


  • Tax bracket to choose corporate vs municipal bond for taxable act.

    Filing status: Married jointly

    Income: 220K

    Pre tax 403/457 contribution: 36K

    Itemized deduction: 25K

    Exemption: 16 K

    Taxable income: 220-36-25-16= 143 K

    I am trying to calculate tax yield to decide between corporate vs muni.

    Which tax bracket I need to choose from- gross income or taxable income?

     

     
Working...
X