What is the name of your state? Kansas
Here goes....
I have just received four savings bonds that were purchased in 1971. There are 4 series E bonds, In the amount of $1000 each.
They've reached maturity (and beyond..they actually matured in June of 2001). I'm way past the 1 year cut off mark to roll them into HH series bonds. I have to cash them out, but I am wondering how the gift tax figures into this....
My Mother's name is also on these bonds. Would it be possible to have her cash them, and then gift the money to my Husband and I? (11,000 each, so as to be under the gift limit).
Would the income tax on the interest earned still be required to be paid, by either my Mother or by us, if the funds were then gifted to us?
In addition, would this eliminate the capital gains taxes on the difference between the purchase price of $750 each? The main amount on these comes from the interest.
If anyone has any insight on this, it would be very welcome!!!
In case it isn't obvious, I'm trying to pay the least tax possible...
03-11-2003, 04:51 AM
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