Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 08-02-2018, 09:01 AM
Junior Member
 
Join Date: Aug 2018
Posts: 2
Smile EE bond redemption

Purchased EE bond with my son as co-owner. When I turn bond over to him and he redeems it, who will paid the tax on the appreciated value?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 08-03-2018, 12:02 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
check to see whether they are still earning interest since the EE bond is issued in the names of co-owners, such as you and your child or you,, interest on the bond is generally taxable to the co-owner who bought the bond. so say,you used your funds to buy the bond, you must pay the tax on the interest.b ut say, You buy the bond but your child is named as the only owner your child is named as the owner (not you Owes the tax on the interest earned. Special rules for EE bonds (and I bonds) allow you to defer the interest you earn each year until the bond matures (stops paying interest) or until you redeem them, whichever is soonerYou can redeem EE savings bonds 12 months after you purchase them. I mean Whether you purchased the bond yourself or were given the bond as a gift, it cannot be redeemed until a year after its purchaseHowever, you will pay penalties and lose accrued interest if you redeem them before they fully mature. Redeeming an EE bond before it is 5 years old will result in the loss of the last 3 months of accrued interest. EE savings bonds were meant to be long-term investments.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 08-03-2018, 01:56 PM
Junior Member
 
Join Date: Aug 2018
Posts: 2
Thank you for your response.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
EE bond question Harrisds Income 1 06-08-2017 10:24 PM
Convert Series EE Bond to 529 Plan? jahhbo For 2014 1 06-05-2015 05:56 PM
NY Tax-Free Minucipal bond interest for C corp christian C-Corporation 2 02-02-2009 11:45 AM
What are the rules regarding the Education Savings Bond Exclusion for 2008? TaxGuru For 2008 0 07-27-2008 01:04 PM
What are the rules regarding the Education Savings Bond Exclusion for 2007? TaxGuru For 2008 0 07-27-2008 12:56 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.