How to give savings bonds to charity — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

How to give savings bonds to charity

Get PDF file

by on
in Small Business Tax

Q. I own old Savings Bonds with lots of accrued interest. I might keep them in my estate or donate them to charity. If I donate them, can I deduct the full value without paying any tax? C.K., Madison, NJ

A. No. If you donate U.S. Savings Bonds to charity, you have to pay tax on the accrued interest just as if you had cashed them in. But the IRS bases your charitable deduction on the full value of the bonds plus the interest. If you do nothing and keep the bonds in your estate, your heirs will owe tax on the accrued interest upon your death.

Tip: Donate the U.S. Savings Bonds to charity through your will. That way, no income tax is due by either you or your heirs.

Related Articles...

Leave a Comment


Previous post:

Next post: