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    Essentials of Federal Taxation
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    Exam 3: Tax Planning Strategies and Related Limitations
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    Investing in Municipal Bonds to Avoid Paying Tax on Interest
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Investing in Municipal Bonds to Avoid Paying Tax on Interest

Question 58

Question 58

Multiple Choice

Investing in municipal bonds to avoid paying tax on interest earned and to earn a higher after-tax yield is an example of:


A) conversion.
B) tax evasion.
C) timing.
D) income shifting.
E) none of these.

Correct Answer:

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