UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next
Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35392  
Subject: Re: taxable interest ee bonds Date: 5/11/2014 10:52 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
After they stop paying interest, you can defer the income taxes due by converting them to H bonds. My aunt did this. Her estate failed to pay the income taxes when it could. So the heirs got stuck with the tax burden from way back. And yes, it does count toward the amt.

As with any investment that defers income taxes, its a good idea to sit down and work out when is the best time to pay income taxes and plan accordingly.

My aunt ended her days in a nursing home and I think her nursing home bill was deductible as a medical expense. Hence, her estate could probably have paid the taxes with minimal actual liability. I called this to the attention of the executor, but executors thought it was too complex. So heirs got stuck paying taxes at their rates on the deferred interest inherited as saving bonds.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next


Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Value Hounds

Considerable Headwinds for Profire Energy?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.