LEGAL DEVELOPMENT FOR MUNICIPAL BONDS
Caller: This caller owns some California municipal bonds and asked Bob whether he should make any additional investments in the municipal bond market pending a decision by the Supreme Court on the case that is testing the taxability of municipal bonds issued by other states. Bob said if you are a California resident and purchase a municipal bond from another state you are going to get hit over the head with up to a 9.3% tax depending on your tax bracket. Bob said we may have to wait until spring before we get a decision, which means May or June of 2008. Bob said we don't know what the court decision will be, or the impact of the court's decision. There are a lot of unknowables. The one thing we do know is that if you go out of state right now, you are going to have to pay the tax.
David Korn: Bob didn't seem too enthusiastic about making such purchases before the Supreme Court weights in on the issue. Here is an article out this month discussing the case entitled, "Municipal bonds making big wages."
- David Korn
More articles by David Korn:
- Bob Brinker Biography, Part 1
- You missed the Buy Signal in 2003, what should you do?
Excerpt from David K's Interpretation of Moneytalk (Bob Brinker Host) March 23, 2003 Newsletter
[ David's Newsletter: People on the Bob Brinker Fan Club mailing list get a discount on David Korn’s newsletter. Details on the discount are in the introductory mailing. ]