Filing Taxes

[rots5]

I have a question about taxes which accountants that i have spoken to cant really give me a straight answer.

Lets say i got a bond which takes 10 yrs to mature. Through out those 10 yrs do i have to pay taxes? And on what?

Secondly - after the 10yrs when it does mature, how much is taxable? The whole thing? or the difference from the initial gift to what it matured to?

[churnbabychurn]

You pay taxes on dividends and interest that you receive.

If the bond was a gift, the value of the gift is tax free. You will pay tax on the the difference between the value of bond when when gift was received and the value you receive when you cash it in. (if there is any difference).
(This will all be unearned income for the EIC)

[Menachem613]

You pay taxes on dividends and interest that you receive.

If the bond was a gift, the value of the gift is tax free. You will pay tax on the the difference between the value of bond when when gift was received and the value you receive when you cash it in. (if there is any difference).
(This will all be unearned income for the EIC)

-1

[churnbabychurn]

-1

But why? Please tell!

[Menachem613]

The donee obtains a carryover basis.

[churnbabychurn]

The donee obtains a carryover basis.

right. Missed that .
unless fmv was lower than basis on gift date bla bla..

[shmebeble]

If I was an independent contractor for a University this summer (did research), what can I write off regarding expenses? I lived at home and drove a leased car. Any help would be great.

[rots5]

right. Missed that .
unless fmv was lower than basis on gift date bla bla..

please explain in layman terms.

[churnbabychurn]

please explain in layman terms.

Its probably not nogeya.
Its a question how you value a gift. Generally its valued at the basis-(cost) to the donor. If the market value was lower than the basis on date of gift then you may be able to value it at a)market value, b) donors basis, c) your selling price. 
Regardless, you are only taxed on the difference between your basis and your sale price.

[rots5]

Its probably not nogeya.
Its a question how you value a gift. Generally its valued at the basis-(cost) to the donor. If the market value was lower than the basis on date of gift then you may be able to value it at a)market value, b) donors basis, c) your selling price. 
Regardless, you are only taxed on the difference between your basis and your sale price.

So the issue is in my case that the original cost is unknown (bec it was bought thru bear sterns) then it was transferred to a diff place. They only have the original transfer value. (can i assume that was the cost basis)?

The gift was bought in 86.

[henche]

I have a question about taxes which accountants that i have spoken to cant really give me a straight answer.

Lets say i got a bond which takes 10 yrs to mature. Through out those 10 yrs do i have to pay taxes? And on what?

Secondly - after the 10yrs when it does mature, how much is taxable? The whole thing? or the difference from the initial gift to what it matured to?

you can find the answer to your first question by googling, easily.


but I'm not allowed to give advice online. sorry.

[Bostener]

So the issue is in my case that the original cost is unknown (bec it was bought thru bear sterns) then it was transferred to a diff place. They only have the original transfer value. (can i assume that was the cost basis)?

The gift was bought in 86.

You can get the cost basis even if you bought it in the 1950's. I have done that.
Now what type of bond is it Treasury, Muni or Corporate?

[rots5]

You can get the cost basis even if you bought it in the 1950's. I have done that.
Now what type of bond is it Treasury, Muni or Corporate?

Zero Coupon Bond or as they put it on my 1099 - U S TREAS STRIP

[henche]

Zero Coupon Bond or as they put it on my 1099 - U S TREAS STRIP

if they're sending a 1099, why aren't you just inputting that into turbotax and doing whatever it spits out?

[rots5]

if they're sending a 1099, why aren't you just inputting that into turbotax and doing whatever it spits out?

bond matured this yr.

[Bostener]

1)Lets say i got a bond which takes 10 yrs to mature. Through out those 10 yrs do i have to pay taxes? And on what?

2)Secondly - after the 10yrs when it does mature, how much is taxable? The whole thing? or the difference from the initial gift to what it matured to?

1) Did you pay taxes on the dividends every year?

2) The gain may be subject to capital gains.

[rots5]

1) Did you pay taxes on the dividends every year?

2) The gain may be subject to capital gains.

I have 1099's since the day the trade was made into my account.

My mom says she has been paying taxes. The present company is completely clueless as whats going on

[churnbabychurn]

ok. Good now I'm.getting somewhere. Thank you!

So.basically I'm still stuck with this: I have this bond that matured and I have no idea what the original.cost basis was. I technically only need to pay the diff if I knew it.

I deleted that. You do pay tax on the interest earned even though you don't get it. Sorry

[churnbabychurn]

Not sure if you pay the difference on a zero coupon, it is purchased at a discount. The taxes that you were supposed to pay over the years on the interest "earned" should increase the basis.

This is a sevara be'alma.

[rots5]

Not sure if you pay the difference on a zero coupon, it is purchased at a discount. The taxes that you were supposed to pay over the years on the interest "earned" should increase the basis.

This is a sevara be'alma.

that's what my svara is. But my 1099's and my total  earned don't equal up.