Gina Gander, a cash basis taxpayer, purchased a Series EE savings bond. She must include the increase in redemption value as interest income each year.

Name: Gina Gander, a cash basis taxpayer, purchased a Series EE savings bond. She must include the increase in redemption value as interest income each year.
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Question

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Taxpayer may include interest income yearly or defer recognition of income until redemption of bond
 However, accrual basis taxpayers must report interest on Series EE bonds when earned each year.

Gina Gander, a Cash Basis Taxpayer, Purchased a Series EE