Daily Tax Report ®

Happy Tax Day: If You’re Buying Muni-Bonds, It May Be Too Late

April 15, 2019, 6:32 PM

If you’re buying municipal bonds after doing your taxes today, it may be too late.

The $3.8 trillion state and local debt market has hit record-high valuations thanks in part to the new $10,000 cap on state and local tax deductions, which has caused investors to seek out tax-free municipal bonds as a way to reduce their tax bills.

But any investor who buys now may have missed out on profiting from the so-called SALT trade. And the tax break offered by municipals has its limits. Depending on their tax rates, investors may be better off buying taxable bonds like...

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