Bond
Evidence of the borrowing by an issuer and a debt instrument for tax purposes.
bond-basics
Issue
An “issue” of Bonds is a grouping of Bonds for purposes of the federal tax rules. Bonds that are part of different Issues will be analyzed separately. Two or more Tax-Exempt Bonds are part of the same Issue if all of the following conditions are met: (i) the Tax-Exempt Bonds are issued at substantially the same time (sold less than 15 days apart), (ii) the Tax-Exempt Bonds are sold pursuant to the same plan of financing, and (iii) the Tax-Exempt Bonds are reasonably expected to be paid from the same source of funds, determined without regard to guarantees from parties unrelated to the obligor. Taxable Bonds and Tax-Exempt Bonds are never part of the same Issue.
Preparing Bonds
Learn about over various terms and concepts that may arise while preparing a bond issue.
See Also
Tax-Exempt Bonds
A bond, the interest on which is excludable from gross income for federal income tax purposes.
Start with the Bond Basics
Hundreds of Terms and Concepts
Useful Life
An accounting estimate of the number of years it is likely for an asset to remain in service for the purpose of cost-effective revenue generation.