TIPS taxation: the other phantom menace
Taxation without realization
👏👏 Special thanks to Elie Rozner for his superb research and writing 👏👏
TIPS coupons are taxed like regular Treasury coupons, but there’s a catch…
To begin, Treasury inflation-protected securities (TIPS) income is taxable as ordinary income and exempt from state tax.
Bond principal is adjusted per Consumer Price Index for All Urban Consumers (CPI-U). …





