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?