Thomas Thinne, a cash basis taxpayer, may either defer reporting the interest on Series E bonds until he cashes the bonds or he may choose to report the increase in redemption value as interest each year.

Question

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This statement is true. As a cash basis taxpayer, Thomas Thinne has the option to either defer reporting the interest on Series E bonds until he cashes them out, or report the increase in redemption value as interest each year.

Thomas Thinne, a Cash Basis Taxpayer, May Either Defer Reporting