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Jointly held US savings bonds Expand / Collapse
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Anonymous
Posted 9/3/2008 1:27:32 PM




On a 706 jointly held savings bonds were listed on Schedule E. If the surviving spouse is to sell them before maturity, does the surviving spouse only have a step up in basis on half of the bonds for the decedents share?

Thank you
Post #651
Posted 9/3/2008 2:56:24 PM
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Savings bonds are IRD assets - there is no step up at all. The value in excess of the purchase price is interest when cashed in.

On the final 1040, one can elect to report all of the unreported interest on the savings bonds. That would increase the basis to the date of death value for both halves; but that's the only way I know of to get a step up in basis on savings bonds.

Mary Kay Foss

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