If you received a 1099-B for the sale of your municipal bond, it's entered as an Investment Sale, under 'Stocks, Crypto, Mutual Funds, Bonds, Other'.
Capital gains on municipal bond investments are taxable as short- or long-term capital gains, depending on how long you have held the investment. The gain may not be taxable in your state, which you can verify through your state DOR. If you've been reporting your interest each year on Form 1099-INT, you gain on the sale will be less.
Here's more detailed info in Guide to Investment Bonds.
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