Can you gift savings bonds?

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  • LCP
    Senior Member
    • Dec 2005
    • 432

    #1

    Can you gift savings bonds?

    Such that the accrued interest is reported by the recipient down the road when he cashes them in ???
  • ChEAr$
    Senior Member
    • Dec 2005
    • 3872

    #2
    Nothing wrong with that: but

    Originally posted by LCP
    Such that the accrued interest is reported by the recipient down the road when he cashes them in ???
    the only problem is determining just how to transfer ownership, i.e. re registering the
    bonds with U S Treasury.

    never heard of it being done.
    ChEAr$,
    Harlan Lunsford, EA n LA

    Comment

    • New York Enrolled Agent
      Senior Member
      • Nov 2006
      • 1531

      #3
      Assuming the potential donor paid for the bonds with his/her funds, then a retitling of the bonds to a donee requires the accrued interest to be recognized by the DONOR in the year of the change.

      This seems to be an example of the Assignment of Income Doctrine - it can't be done. The interest earned must be reported by the one who earned the interest.

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