Series Ee Savings Bond Interest Rate Can My Daughter Cash In My Savings Bonds At A Lower Tax Rate And Then Gift The Money To Me?

Can my daughter cash in my savings bonds at a lower tax rate and then gift the money to me? - series ee savings bond interest rate

I have over $ 5,000 in Series EE savings performance is currently 4% interest. I prefer money for me to work on the stock market have, but if they cash that I am concerned, with about $ 550 in taxes on capital gains.

My idea (to my daughter who is a little) as co-owner bond. You can then load out and (as undertand) the tax rate on capital gains will be zero, since there is no income. Then you can "gift of $ 5000 back to me, they are tax-free amount that is smaller than the current division of the government in 2009.

Does this work?

3 comments:

ninasgra... said...

Income of the link to your income, regardless of the addition of a co-owner. A new co-owners share the proceeds from the day of the condominium.

So, what do you propose will not work.

the tax lady said...

It can not be a savings bond.

If you try to issue bonds on their behalf, it triggers the interest for any interest until the date of transfer.

Even if it could by magic, his daughter, the fee, interest income and $ 1,800 to pay later, your tax rate anyway.

Helen, EA in PA said...

No, the first has nothing to do with capital gains, interest income only.

Gifts are not connected to the chain and anchor. Or give money and take it or have the same success. Do not help your daughter to fraud.

Helen, EA in PA

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