Appendix A to Part 359 - Redemption Value Calculations
31:2.1.1.1.56.6.17.1.18 : Appendix A
Appendix A to Part 359 - Redemption Value Calculations 1. What are
some general tax considerations?
Interest on savings bonds is subject to taxes imposed under the
Internal Revenue Code of 1986, as amended. The bonds are exempt
from taxation by any State or political subdivision of a State,
except for estate or inheritance taxes. (See 31 U.S.C. 3124.)
2. What is an example of a book-entry Series I savings bonds
redemption value calculation?
Assume a New Treasury Direct par investment amount in a
book-entry Series I savings bonds of $34.59, with an issue date of
May, 2001, and a redemption date of December, 2001. The published
CRV for a definitive $100 Series I savings bonds issued May, 2001
and redeemed December, 2001 = $101.96.
Calculation: [(Book-entry par investment) ÷ (100)] × CRV value for
$100 bond [(34.59 ÷ 100)] × 101.96 [0.3459] × 101.96 35.267964 =
$35.27