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Subject Author Date
Savings Bonds JB 12-12-2006
| |   ---> Re: Savings Bonds Harlan Lunsford12-17-2006
| |   `--> Re: Savings Bonds John~          ...12-17-2006
| |--> Re: Savings Bonds Victor Roberts12-15-2006
| `--> Re: Savings Bonds Victor Roberts12-15-2006
| |--> Re: Savings Bonds Victor Roberts12-15-2006
| `--> Re: Savings Bonds Victor Roberts12-15-2006
|--> Re: Savings Bonds Harlan Lunsford12-13-2006
Posted by JB on December 12, 2006, 2:34 am
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A client came into the office today with a large box full of
US Savings bond somegoing back to1944. I started practicing
in the late 60s. Does anyone know if the bondinterest was
treated differently back then? Or, if it even matters, since
he will cash them in 2006 or 2007?

Jeffrey Berk, CPA
Jenkintown, PA 19046

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Posted by NadCixelsyd on December 13, 2006, 10:38 pm
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JB wrote:

> Does anyone know if the bond interest was treated differently
> back then?

No. Bond interest has always been taxable upon redemption
unless the owner notifies the IRS that interest is being
declared as accrued. (e.g. file at least one tax return with
bond interest declared, even if it generates no tax in the
year declared).

The sad part is that Savings Bonds cease paying interest
after a while (30 years?).

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
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<< Copyright (2006) - All rights reserved. >>
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Posted by Rich Carreiro on December 15, 2006, 10:18 am
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> JB wrote:

>> Does anyone know if the bond interest was treated differently
>> back then?

> No. Bond interest has always been taxable upon redemption

And it is taxable upon final maturity (i.e. when the
bond ceases earning interest). So some savings bond
interest should have been reported on past returns.

--
Rich Carreiro rlcarr@animato.arlington.ma.us

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
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Posted by Ernie Klein on December 16, 2006, 8:58 pm
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>> JB wrote:

>>> Does anyone know if the bond interest was treated differently
>>> back then?

>> No. Bond interest has always been taxable upon redemption

> And it is taxable upon final maturity (i.e. when the
> bond ceases earning interest). So some savings bond
> interest should have been reported on past returns.

Oh really? I have some savings bonds that were given to me
when I was a child -- so does my wife. They have sat in our
safe deposit box unseen for years. We are in our 60's now.
Oh well -- something else for our heirs to worry about I
guess :)

--
-Ernie-

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Harlan Lunsford on December 17, 2006, 6:40 pm
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Ernie Klein wrote:

>> And it is taxable upon final maturity (i.e. when the
>> bond ceases earning interest). So some savings bond
>> interest should have been reported on past returns.

> Oh really? I have some savings bonds that were given to me
> when I was a child -- so does my wife. They have sat in our
> safe deposit box unseen for years. We are in our 60's now.
> Oh well -- something else for our heirs to worry about I
> guess :)

Ernie, you may be interested to know of a new program called
SKI. For example you take a SKI trip to Europe. Or you
go on a SKI shopping spree. SKI stands for ....

"Spending Kids' Inheritance"

(I had to work for mine; (since I was eight years old); they
can too!)

ChEAr$,
Harlan Lunsford, EA n LA

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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