Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Treasury Bond Maturing - Tax Consequences
Old 07-07-2016, 01:04 PM   #1
Thinks s/he gets paid by the post
sengsational's Avatar
Join Date: Oct 2010
Posts: 2,836
Treasury Bond Maturing - Tax Consequences

My grandmother bought my daughter a FICO STRIPS bond 21 years ago (CUSIP: 31771CTG0). It's issued to my wife C/F my daughter "a/minor u/laws".

Anyway, it's going to be maturing, and I wondered what the tax consequences would be. My first thought was that I've been getting a 1099-OID every year, so maybe there's not much in the way of tax consequences. But the price paid was about $1000, and now it's worth the face value of $5000. If I add up the OID's, it seems like it would be maybe $2000(?). Anyway, I don't think it would come close to $4000, which is the reason for the question.

Anyone have any experience with having a zero coupon bond mature?

sengsational is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 07-09-2016, 04:20 PM   #2
Thinks s/he gets paid by the post
Join Date: Jan 2006
Posts: 2,504
don't know the answer but perhaps it's in here somewhere:

Have you been reporting the OIDs in previous years? Perhaps the final
1099 will report the missing amount? Is it normal to have a final large lump?
Sounds like it's not linear?

ask at for other perspectives.

kaneohe is offline   Reply With Quote
Old 07-10-2016, 04:59 AM   #3
Full time employment: Posting here.
DrRoy's Avatar
Join Date: Dec 2015
Location: Michigan
Posts: 787
My understanding is that the 1099's cover the income and taxes due on the zero. If there were some other imputed income you would get a document for that too. When you buy a bond at a premium due to a high coupon, you do not get to write off the drop in value, which is the reverse situation.
"The mountains are calling, and I must go." John Muir
DrRoy is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
"Good deal" One Year 5% CD maturing at NFCU stephenson FIRE and Money 1 08-17-2015 08:21 AM
when are treasury bond etf's not treasury bond etf's ? mathjak107 FIRE and Money 1 07-20-2015 08:26 AM
ARM maturing.....never knew payment could drop! wrigley FIRE and Money 6 07-01-2009 04:17 AM
Bond, Treasury Bond RetiredGypsy FIRE and Money 2 08-25-2008 11:14 AM
Reporting maturing bonds on tax forms woolybully FIRE and Money 1 02-25-2007 04:56 PM


All times are GMT -6. The time now is 07:47 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.