The Tax Questions Blog

Posts Tagged ‘us savings bond taxable’

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Question: Inherited US savings bonds questions - taxes?

Series I bonds from mother's estate were jointly owned by mother and a child. Three of the five children's bonds remain. (The other two batches were redeemed to help finance a new home for mother.) Now we need to distribute those bonds and other funds equally to the five children. Since the bonds have different accumulated interest (ranging from $2000-$5000) and everyone's tax rate is different - what is the best way to fairly distribute these bonds? The I Bonds are now paying almost 8%!! OR, can the bonds be cashed and taxable to the estate? OR, is there some way to do this that I haven't considered. THANKS in advance for any help!!!!

Answer: I am not sure about I-bonds, but MOST assets are inherited at the MARKET value on the date of death. That means any interest accrued up to the date of death is NOT taxed to anyone.

‘A question of money: Why was HSBC so reluctant to probe credit card fraud?’

Question: A fraudulent transaction showed up on my HSBC credit card statement in July last year to Cyb/Electro-manic.com for £153.

All About Taxes 3 - Tax Credits and Deductions for 2009

Question: A bond interest at 7% p/yr. Intrst is tax at 28%. What intrst rate wld a nontaxble bond need to pay --cont?

-cont'- to yield the same after tax income as the taxable bond?

Answer: equivalent non-taxable interest rate = (100 - 28)% of 7%

= 72% of 7%

ans : 5.04%
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note :
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the ans. is valid only for a 1 year bond
the equivalent interest rate will vary with the # of years

The Bond Book, Third Edition: Everything Investors Need to Know About Treasuries, Municipals, GNMAs, Corporates, Zeros, Bond Funds, Money Market Funds, and More $18.53 Everything on Treasuries, munis, bond funds, and more! The bond buyer’s answer book—updated for the new economy “As in the first two editions, this third edition of The Bond Book continues to be the ideal reference for the individual investor. It has all the necessary details, well explained and illustrated without excessive mathematics. In addition to providing this essential content, it is...

The Fundamentals of Municipal Bonds, 5th Edition $30.84 Praise for the Classic Guide to the Bond Market"This is simply the most comprehensive, useful look-it-up book on municipal bonds I've ever read (said with all due respect to The ABC of Municipal Bonds my dad wrote in 1937 when I was nine). Read Fundamentals cover to cover. I'm keeping mine in my briefcase, under my arm, at my fingertips. No accountant, financial advisor, attorney, new bond salesma...

The Bond Book: Everything Investors Need to Know About Treasuries, Municipals, GNMAs, Corporates, Zeros, Bond Funds, Money Market Funds, and More $4.29 In today’s volatile financial environment, growing numbers of investors are looking to flee the stock market in search of safer ground. While the bond market has often been a “safe haven,” confusing new bonds and bond funds make it increasingly difficult for unfamiliar investors to choose the correct fixed income investments. The Bond Book provides investors with the information and tools th...

Bonds can cut portfolio's volatility while generating income

TROY OXFORD/DMNWhen people talk about investment tips, they focus on stocks. Few consumers ask me which hot bond to buy. Bonds are a very different animal from stocks, but they can - and should - have a place in your investment portfolio.

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