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

Appreciation in value

Increase in value of property due to market conditions. When you sell appreciated property, you pay tax on the appreciation since the date of purchase. When you donate appreciated property held long term, you may generally deduct the appreciated value.

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