- quote -

In my only-partially-informed opinion, it's unlikely that an error on Form
1040 Line 8b affects the tax due. Before panicking, check if it does for
you.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Arthur Kamlet wrote:
- quote -

My father gave the bonds to my daughter when she was one year old under
the uniform gifts to minors act. I am the custodian.

I received a 1099 every year, with "no information to report" on the
1099-div, 1099-int, and 1099-b.

Thanks again for any help.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

In article <Gv-dnXqMhvs5qi_anZ2dnUVZ_rKtnZ2d[at]comcast.com> ,
Edward <Edward[at]nospamatall.com> wrote:
- quote -


Every year the bond owner was supposed to know the tax exempt
interest accrued for that bond, and do two things:

i) enter that interest on Form 1040 Line 8b, and

ii) add that interest to the cost basis of the bond.



If the bond was bought as an Initial Public Offerring, the
original cost plus all the accrued interest until maturity
should equal the redemption amount. That means no gain
or loss.



You said your father paid for the bonds, and you want to know
if you owe? How did you get involved?


And if your state has an income tax, chances are they tax
California muni bond interest.
--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

My father bought what I thought were tax free bonds for my daughter in
1990. The bonds matured in 2007. He bought "65,000 California Zero CPN
10-1-07 (Cpn eagles II) Ser 6 OAR 7%, Orig 10% 4-1-10 Book Entry, MTY
value $1000 per 1M-G.0. Yld to mat 7.00. No periodic payment." He
paid $19,649.55 for the bonds. They matured at $65,000. We do not live
in California, if that makes a difference. Do I owe taxes on the
difference between 65,000 and 19,649.55, or is there more to it? We
have not paid any taxes in any year on these bonds. Thank you very much
for any help.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >