[Anonymous]

I read the Becker book, and it says Federal bonds interest is taxable. Interest on the obligation of a possession of the United States is tax exempt. Can someone explain it in more details? I thought these two are the same…examples on each catogery would be very helpful. Thanks.

[Anonymous]

Hey CPA-Convertible, federal bond interest is your typical US treasury bonds, notes, etc issued by the federal government which is taxable. Interest obligation of a possession of the US (Guam, Puerto Rico, etc.) is not taxable…hope that helps!

[Anonymous]

@chiwhitesox…thanks for the explaination. wow. I though US treasury bond interest was tax free. great scores by the way.

[Author]

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