35 Miss. Code. R. 3-02-04-105
Current through October 31, 2024
Interest income earned in connection with repurchase agreements is subject to tax. A repurchase agreement is an agreement with a commitment by the seller (dealer) to buy a security back from the purchaser (customer) at a specified price at a designated future date. It represents a collateralized short-term loan where the collateral may be a federal obligation such as a treasury security or federal agency security. The interest earned is interest on a loan of funds rather than a direct payment of interest on a federal obligation; therefore, it does not qualify for exemption.
35 Miss. Code. R. 3-02-04-105