"KSB" <garbage41[at]optonline.net> wrote in message
news:47efdff4$0$5645$607ed4bc[at]cv.net...
- quote -

Form 1041. Yes - via 1041 Schedule K-1. However, note that the 1099-INT is
likely to impute the interest since purchase and there is a valuation
step-up so there may also be an estate tax deduction passed through for the
IRD.

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Series HH bonds with a deferred tax of $38500 redeemed by estate of owner in
2008 deceased in 2007)

When are taxes due, on what form (1041 or 1040) and, if the funds are
distributed to heirs of estate, is it taxable to them rather then deceased
or estate. (Heirs in lower tax bracket).

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >