< HOME  Monday, March 27, 2006

How to Avoid Taxes

There are two likely scenarios in the event of the death of a bond holder, according to Stephen Meyerhardt, speaking for the Bureau of the Public Debt.

If there's a co-owner or a beneficiary named on the bond, the bond would become the property of that person.

If there's no co-owner or beneficiary or if they died before the primary owner, the bond becomes part of the primary owner's estate and goes to the heirs.

Federal tax on the interest accumulated on the bond is owed by whoever redeems the bond unless the estate handles the tax or the original bond holder had paid tax on it year-to-year.

The good news on taxes is that if the person who redeems the bond uses it to pay qualified education expenses, it can be claimed as an exclusion from income on their tax filing.

And NO state tax is owed on I-bonds. [emphasis added]
So, if you work for a living, tough noogies. After all, someone has to pay that interest!

But, if you sit back and collect interest, American tax payers will subsidize education in business and finance for you and your heirs so you can better learn how to fleece us.


At Monday, March 27, 2006, Anonymous Anonymous said...

So it would seem the rich pull another long straw, while the working man eats pebbles for supper?

Two questions come to mind. Why would someone pass such a law, and, who benefits?

IMO, this is hardly unique to tax laws. :D

At Monday, March 27, 2006, Blogger qrswave said...

Of course it isn't unique. I post it only to give people a glimpse of what should be obvious.

The mainstream media is busy pulling our attention in every direction except this.

At Thursday, March 30, 2006, Blogger Red Tulips said...

How to avoid paying taxes...

Get your taxes done by KPMG! That is a great way to avoid things, for sure!


The slogan of Billionaires for Bush that they chanted to the police during the Republican National Convention protests: "Thank you for paying our taxes!"


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