Private-activity bonds

When investors buy so-called private-activity bonds, which are often used to help fund the building of airports and stadi-... 

Investors must be aware that the interest payments from municipal bond mutual funds that own private-activity bonds can push the investor s income to a level where he or she at least has to file an AMT form and possibly has to pay the tax itself. Congress estimates that as many as 8.5 million people will have to pay the AMT by 2007, up from just 605,000 in 1996. 

Horace Mann Bond to I. J. K. Welles, May 15,1936, part i, reel 5, and Memorandum for the Rosenwald Fund Explorers to be Used as an Incomplete Guide for the Research Part of Their Activities, 1934, part 2, reel 29, both in Horace Mann Bond Papers, microfilm, Duke University (original at University of Massachussetts, Amherst) News Letter to Rural School Explorers, November 1934, in Julia W. Bond Papers, private collection. For Bond s biography, see Wayne J. Urban, Black Scholar Horace Mann Bond, 1904-19-/2 (Athens University of Georgia Press, 1992). 

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