Am I correct in this assumption. You pay yearly taxes on Tips based on the changing CPI portion of the rate, but receive only the fixed portion of the rate twice a year.
Example:
CPI 5.75% (Pay taxes on 5.75% not received = but credited)
Fixed rate 1.75% (Receive interest twice a year)
Do you pay taxes on that 1.75% interest that you do recive yearly, or only when you sell?
Example:
CPI 5.75% (Pay taxes on 5.75% not received = but credited)
Fixed rate 1.75% (Receive interest twice a year)
Do you pay taxes on that 1.75% interest that you do recive yearly, or only when you sell?