Question for the Money Doctors
Question submitted on Feb 5, 2014.
QuestionFor jointly owed us savings bonds (ie parent and child) if the child cashes the bond as a co-owner who pays the taxes.
According to IRS Publication 550 (page 9), the interest on a savings bond issued in joint names would taxable to the co-owner that actually purchased the bond. If each co-owner contributed a portion of the bond's purchase price, the interest is normally taxable to each in proportion to the amount that each paid.
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