do u get hosed on bond redemptions?

[mizzou]

I had a bunch of bonds redeem this last year. I forget how that plays into taxes (haven't gone through everything yet, just got 1099s today)

I wouldn't think it would cost me anything to uncle sam, because it's the interest income I'm receiving I have to be taxed on.

Will have to figure that out when I fire up turbotax soon =O

I used to do the long form by hand, what a freaking nightmare that was

 

[FoBoT]

you didn't think you'd have pay income tax on interest income? :\

 

[jhu]

It should be capital gains tax so that's 15% tax on the interest.

 

[mizzou]

you didn't think you'd have pay income tax on interest income? :\

I thought was something like, you pay $5,000 on a bond. The bond pays out interest over a period of time, which is taxable and reported as INT income. Then bond matures and you get your $5,000 back?

I'm a freaking retard when it comes to this messed up tiny portfolio I inherited

 

[vi edit]

What type of bond?

 

[mizzou]

What type of bond?

was a CATERPILLAR FIN SERV CRP POWERNOTES w/ semiannual payout. 7 year bond Orig cost and redeemed cost are the same, no net gain or loss

i dont see how any of this is taxable, but i understand why it is reported

 

[vi edit]

I don't know corporate bonds very well...but have been you receiving any 1099's on your income interest in previous years that you claimed? Also...please check the offical "tax" thread up top.