friar1610
Thinks s/he gets paid by the post
- Joined
- Jun 27, 2002
- Messages
- 1,638
I have a bunch of I-Bonds. I know that I will have to pay taxes on the gains when I redeem them.
I also know the gains can be free from taxes if they are used for educational purposes. I also know that as a grandparent (rather than a parent) of kids who will be going to college, I am ineligible for that tax break.
So my question is: can I gift individual I-bonds to my grandchildren - or to their parents - (as l long as I keep within the annual gifting limitations) and can the recipient of the gifted I-Bonds then use them tax-free for tuition?
I also know the gains can be free from taxes if they are used for educational purposes. I also know that as a grandparent (rather than a parent) of kids who will be going to college, I am ineligible for that tax break.
So my question is: can I gift individual I-bonds to my grandchildren - or to their parents - (as l long as I keep within the annual gifting limitations) and can the recipient of the gifted I-Bonds then use them tax-free for tuition?