Comments on: Should the heirs or the estate pay the tax? http://www.savings-bond-advisor.com/should-the-heirs-or-the-estate-pay-the-tax/ Wed, 08 Feb 2012 17:44:10 +0000 http://wordpress.org/?v=2.0.4 by: Tom Adams http://www.savings-bond-advisor.com/should-the-heirs-or-the-estate-pay-the-tax/#comment-69753 Tue, 04 May 2010 15:40:42 +0000 http://www.savings-bond-advisor.com/should-the-heirs-or-the-estate-pay-the-tax/#comment-69753 Kathy - Although this sounds like a Savings Bond question, it's a tax question (the answer would be the same for <i>any kind</i> of interest-bearing investment). It would be best to ask the lawyer handling the estate or your tax advisor. Tom Adams Kathy - Although this sounds like a Savings Bond question, it's a tax question (the answer would be the same for any kind of interest-bearing investment). It would be best to ask the lawyer handling the estate or your tax advisor.

Tom Adams

]]> by: Kathy Stanley http://www.savings-bond-advisor.com/should-the-heirs-or-the-estate-pay-the-tax/#comment-69696 Mon, 03 May 2010 22:30:23 +0000 http://www.savings-bond-advisor.com/should-the-heirs-or-the-estate-pay-the-tax/#comment-69696 As executrix for my mother's estate, I recently cashed and deposited her savings bonds into the estate account. Do I have to make an estimated tax payment on the interest now or do I wait until I receive the 1099 at the beginning of next year and pay the taxes then? My mother died last year, so it is not possible to include it on her last tax return. As executrix for my mother's estate, I recently cashed and deposited her savings bonds into the estate account. Do I have to make an estimated tax payment on the interest now or do I wait until I receive the 1099 at the beginning of next year and pay the taxes then? My mother died last year, so it is not possible to include it on her last tax return.

]]> by: Tom Adams http://www.savings-bond-advisor.com/should-the-heirs-or-the-estate-pay-the-tax/#comment-67039 Mon, 19 Apr 2010 15:00:18 +0000 http://www.savings-bond-advisor.com/should-the-heirs-or-the-estate-pay-the-tax/#comment-67039 Bernie - if by twice you mean estate taxes and income taxes, yes, your family owes both. However, there's a deduction you can take for the estate tax that was paid on the Savings Bond interest when you cash the bonds and pay the income tax. This is pretty complicated and will require your tax advisor to look up the IRS rules on this. Tom Adams Bernie - if by twice you mean estate taxes and income taxes, yes, your family owes both.

However, there's a deduction you can take for the estate tax that was paid on the Savings Bond interest when you cash the bonds and pay the income tax. This is pretty complicated and will require your tax advisor to look up the IRS rules on this.

Tom Adams

]]> by: Bernie Lieb http://www.savings-bond-advisor.com/should-the-heirs-or-the-estate-pay-the-tax/#comment-66533 Sat, 17 Apr 2010 02:35:41 +0000 http://www.savings-bond-advisor.com/should-the-heirs-or-the-estate-pay-the-tax/#comment-66533 Are estate taxes different from federal taxes paid over the year of the person's death? My father's estate tax return paid taxes on the interest on savings bonds, but there were no taxes paid on that interest on his federal tax return. Would he have to pay taxes on that bond interest twice? Are estate taxes different from federal taxes paid over the year of the person's death? My father's estate tax return paid taxes on the interest on savings bonds, but there were no taxes paid on that interest on his federal tax return. Would he have to pay taxes on that bond interest twice?

]]> by: Tom Adams http://www.savings-bond-advisor.com/should-the-heirs-or-the-estate-pay-the-tax/#comment-19307 Thu, 17 Apr 2008 17:16:03 +0000 http://www.savings-bond-advisor.com/should-the-heirs-or-the-estate-pay-the-tax/#comment-19307 Mark - looking at it another way - when you pay estate taxes on Savings Bonds, part of the value of the Savings Bonds is unpaid income taxes - so you're paying estate tax on money you'll never get - you'll pay it in taxes. So there is a deduction for the person who cashes the bonds and owes the income tax; but sometimes it's better to handle this in other ways. Tom Adams Mark - looking at it another way - when you pay estate taxes on Savings Bonds, part of the value of the Savings Bonds is unpaid income taxes - so you're paying estate tax on money you'll never get - you'll pay it in taxes. So there is a deduction for the person who cashes the bonds and owes the income tax; but sometimes it's better to handle this in other ways.

Tom Adams

]]> by: Mark http://www.savings-bond-advisor.com/should-the-heirs-or-the-estate-pay-the-tax/#comment-19304 Thu, 17 Apr 2008 17:01:37 +0000 http://www.savings-bond-advisor.com/should-the-heirs-or-the-estate-pay-the-tax/#comment-19304 Don't forget if the bond are included in the estate and subject to estate tax, then there is miscelleanous itemized deduction NOT subject to 2% Adjusted Gross Income (AGI) limit to lessen the effect of the income taxes due when the bonds are redeemed. Don't forget if the bond are included in the estate and subject to estate tax, then there is miscelleanous itemized deduction NOT subject to 2% Adjusted Gross Income (AGI) limit to lessen the effect of the income taxes due when the bonds are redeemed.

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