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- Title
Tax-Advantaged Strategies for Inflation-Protected Investing.
- Authors
Hammer, Seth
- Abstract
A potential key benefit of the savings bonds for education provisions is that even if all of the income was accrued when the taxpayers' modified AGI was in excess of the threshold, it will still qualify for tax-free treatment, provided that the taxpayers meet the requisite criteria at the time of redemption. Strategies for Maximizing After-Tax Returns: Children as Owners of I Bonds Purchases of I Bonds by children potentially allow them to achieve up to $1,150 of tax-free income and $1,150 of income taxable at a child's individual tax rates. In the event that the funds are not needed or if the taxpayers' income turns out to be too high to qualify for the exclusion, the taxpayers may still benefit from up to 30 years of tax deferred income growth. Here, there is the added benefit that the taxpayers were able to avoid having the I Bond income be subject to the tax on net investment income.
- Subjects
MEDICARE Part D; INTEREST rates; BONDHOLDERS; GOVERNMENT securities; TAX benefits; FIXED-income securities; CONGREGATE housing; CONSUMER price indexes; UNIVERSITY tuition
- Publication
CPA Journal, 2022, Vol 92, Issue 5/6, p52
- ISSN
0732-8435
- Publication type
Article