Private Activity Bond Interest Interest from private activity bonds generally is not taxable, however interest from specified private activity bonds issued after August 7. 1986 must be added to income for AMT purposes. Updated on July 11, 2018 Was this article helpful? Yes No Related Articles Updates Bartering Income – Form 1099-B Form 1099-K – Merchant Card and Third Party Network Payments Schedule D – Sale of Main Home Form 1040 – Schedule E Form 6198 – At Risk Loss Limitations