Submitted By: someone
Answered: February 24, 2017 8:00 am

I have series EE bonds that have reached final maturity and have stopped earning interest. If I don’t cash them in now, can I defer the tax on this interest?

No. A taxpayer who has not reported interest annually but opted to defer it must take all of the accrued interest into income on the earlier of these events:

  • When the bonds are cashed in
  • When you give up ownership (e.g., transfer them)
  • When the bonds stop earning interest because they reached final maturity
Tags: EE bonds
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Tax Glossary

Residential rental property

Real property in which 80% or more of the gross income is from dwelling units. Under MACRS, depreciation is claimed over 27.5 years under the straight-line method.

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