Reply To: Taxation of savings bonds

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Kaye Thomas

Yes and no. You can change your method of tax accounting for bond interest, but the change will apply not only to bonds you subsequently acquire but also to bonds you already own. Naturally, you will not be double taxed on interest that has already accrued on bonds you already own, but any interest that accrues in future years will be deferred until disposition, redemption or final maturity, whichever occurs first. If that’s what you want, respond here and I’ll provide details on how to make the change.