Tax Facts

7669 / Are interest and expense deductions limited because of ownership of municipal bonds?

Updated: October 20, 2026 at 03:51 PM
If interest is paid on loans by an individual who owns tax-exempt municipal bonds, deduction of the interest may be partly or entirely denied (see Q 8044). In addition, some expense deductions may be denied to individuals holding obligations – the interest on which is tax-exempt (see Q 8050).

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