Inherited ee bonds and cd's

[CRAIG BARCH]

My client inherited ee bonds and cd's in december 2013. He then cashed them in february 2014. I believe the bonds and cd's were fully matured when he inherited them.
My questions are; if these bonds & cd's were put on the estate tax return does my client have to pay tax on them also. If they are not included in the estate tax
return does that make them taxable to my client. Does my client have to pay anything on this inherited property? Does he have to pay the difference between what
was put on the estate tax return and when he cashed them in. I appreciate any help i can get in this matter!! Thanks!!





Concerned tax preparer,


craig

[Bees Knees]

There is an election to report accrued ee bond interest on the decedents final 1040. If that election was not made by the executor of the estate, then the accrued interest is taxed to the one cashing them in.

CDs are reported on the decedents estate return at fair market value. So the only tax you pay is on the interest earned after the beneficiary takes ownership of the CDs.