Tax Update Blog: Permalink
« Previous · Tax Update Blog Home · Next »
The trouble with Barry bearer bonds
January 12, 2010
Andrew Mitchel explains:
Under Code § 165(j), no deduction is allowed for losses sustained on bearer bonds. For instance, if a bearer bond is purchased and later resold at a loss, no deduction would be allowed for U.S. tax purposes. This is quite an unusual rule and many tax preparers may not be aware of it.In addition, Code § 1287 denies capital gain treatment for gains on bearer bonds. For instance, if a bearer bond is purchased and later resold at a gain, the gain would be taxed as ordinary income.
These are most likely to be seen in offshore accounts, so look out.
Bookmark: del.icio.us • Digg • reddit
TrackBack
TrackBack URL for this entry:
http://www.rothcpa.com/mt/contages.cgi/1435
Tax Updates
Subscribe to Tax Updates
The items included in the Tax Update Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation.
Joe Kristan writes the Tax Update items, and any opinions expressed or implied are not neccesarily shared by anyone else at Roth & Company, P.C. Address questions or comments on Tax Updates to
Search Tax Updates
Friends and Neighbors
Economics Nerds
Hard-Core Tax Nerds
Gigablogs
Insurance Folk
Goners
Legislation
Tax Update Data Feeds
