The amount of interest income a taxpayer recognizes when he redeems a U.S. savings bond is:

Question

Quizplus · Accepted Answer

The taxpayer recognizes interest income upon redemption of U.S. savings bonds based on the excess of the bond proceeds over their basis in the bonds. The basis in the bonds is typically the purchase price of the bond. Therefore, the interest income recognized is the difference between the redemption price and the purchase price.

The Amount of Interest Income a Taxpayer Recognizes When He