Municipal Bond Forum
Out-of-state munis for California resident
Q
I’m a California resident paying a 12% state tax. Do you think it makes sense for me to buy municipal bonds from other states?
A
James A. Klotz responds:
As a California resident with a 12% state tax, buying out-of-state bonds can be extremely challenging, particularly if the new tax-reform proposal is enacted.
According to the terms of the bill, state and local income taxes will no longer be a deduction when calculating your federal income tax.
It will be extremely difficult, if not impossible, to find quality bonds issued from other states providing after-tax yields comparable to those of California issues.
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.
This report is produced solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. This report is based on information obtained from sources believed to be reliable but no independent verification has been made, nor is its accuracy or completeness guaranteed.