In general, a private activity bond is a bond issued by or on behalf of a local or state government for the purpose of financing the project of a private user.[1]
Section 141(a) of the Internal Revenue Code provides that the term private activity bond means any bond issued as part of an issue which meets:
(1) the private business use test of section 141(b)(1) and the private security or payment test of section 141(b)(2), or
(2) the private loan financing test of § 141(c).
Under Treasury Regulation section 1.141-2, an interest on a private activity bond is not excludable from gross income under section 103(a) of the Internal Revenue Code unless the bond is a qualified bond. Interest from private activity bonds became subject to the Alternative Minimum Tax after the Tax Reform Act of 1986. All things equal, yields on private activity bonds are higher due to this tax treatment.
NotesEdit
^Maguire, Steven; Hughes, Joseph S. (July 13, 2018). Private Activity Bonds: An Introduction(PDF). Washington, DC: Congressional Research Service. Retrieved 20 July 2018.
ReferencesEdit
United States Internal Revenue Service, Publication 4078: Tax-Exempt Private Activity Bonds, (Rev. 1-2016) Catalog Number 34662G.
External linksEdit
Council of Development Finance Agencies
Municipal Securities Rulemaking Board
August 31, 2023
private, activity, bond, general, private, activity, bond, bond, issued, behalf, local, state, government, purpose, financing, project, private, user, contents, application, within, united, states, notes, references, external, linksapplication, within, united,. In general a private activity bond is a bond issued by or on behalf of a local or state government for the purpose of financing the project of a private user 1 Contents 1 Application within the United States 2 Notes 3 References 4 External linksApplication within the United States EditSection 141 a of the Internal Revenue Code provides that the term private activity bond means any bond issued as part of an issue which meets 1 the private business use test of section 141 b 1 and the private security or payment test of section 141 b 2 or dd 2 the private loan financing test of 141 c dd Under Treasury Regulation section 1 141 2 an interest on a private activity bond is not excludable from gross income under section 103 a of the Internal Revenue Code unless the bond is a qualified bond Interest from private activity bonds became subject to the Alternative Minimum Tax after the Tax Reform Act of 1986 All things equal yields on private activity bonds are higher due to this tax treatment Notes Edit Maguire Steven Hughes Joseph S July 13 2018 Private Activity Bonds An Introduction PDF Washington DC Congressional Research Service Retrieved 20 July 2018 References EditUnited States Internal Revenue Service Publication 4078 Tax Exempt Private Activity Bonds Rev 1 2016 Catalog Number 34662G External links EditCouncil of Development Finance Agencies Municipal Securities Rulemaking Board Retrieved from https en wikipedia org w index php title Private activity bond amp oldid 1002813394, wikipedia, wiki, book, books, library,
