Tax-Exempt Investment
/ˈtæks ɪɡˌzɛmpt ɪnˈvɛstmənt/
Definitions
- (n.) An investment that generates income exempt from federal or state taxes under applicable law.
Municipal bonds are common examples of tax-exempt investments, offering interest that is free from federal income tax.
Forms
- tax-exempt investment
- tax-exempt investments
Related terms
See also
Commentary
Tax-exempt investments often arise in structured finance and tax planning contexts; drafters should specify applicable jurisdictions and tax types explicitly.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.