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Old 08-02-2018, 09:01 AM
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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?



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Old 08-03-2018, 12:02 PM
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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.



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Old 08-03-2018, 01:56 PM
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Thank you for your response.



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