If you purchased a bond on August 1,2014 on the secondary market with face value $10000 and received $200 interest on January 1,2015,you would owe tax on the interest earned on your 2014 tax return.

Question

Quizplus · Accepted Answer

The bond was purchased on the secondary market, so the interest earned up to the purchase date is not taxable to the new owner. The interest earned from the purchase date to the end of the year is taxable.

If You Purchased a Bond on August 1,2014 on the Secondary