Today's financial term of the day is De Minimis Tax Rule.
De Minimis Tax Rule is a rule in which the capital gains tax should be paid on a bond if that bond was bought at a discount to the face value which is over a quarter point a year in between the time of the purchase and its maturity. The reason a capital gains tax is imposed is so that the bondholder earns on the difference between the paid price and the price that will be received when it matures – which is seen as a capital gain.
If you would like to see a certain financial term explained here on our blog, send it to us. We'd love to hear from you.



