| Buying a Home and Series EE Bonds |
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wyclef
Full Member
Cash: $ 18.22
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Joined: 08 Oct 2004
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| Buying a Home and Series EE Bonds |
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Hello, I'm buying a home and have 10k in Series EE bonds and was wondering if I should just cash out the bonds and sink it into a down payment on the house? trying to figure out what to do with the series ee bonds.
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Mon Mar 19, 2007 3:22 pm |
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BlankenshipFP
Money Talk Advisor
Cash: $ 79.56
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Joined: 05 Oct 2004
Location: Illinois
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The only place that I know of where EE's get preferential tax treatment is for education. I think (going from memory here, so bear with me) that the bonds need to have been purchased after 1989, by an owner over age 25, and the proceeds used for qualified education expenses - subject to income restrictions. www.treasurydirect.com should have exact answers for you.
Beyond that, what you have is deferred income in those bonds - value that has accrued that you haven't had to pay tax on yet. Depending upon the age and the rates of the bonds, you might want to hang on to them for a while before you cash them in - or, if you need the funds to buy a house, you could just cash them in and go for it.
Jim Blankenship, CFP�, EA
Blankenship Financial Planning, Ltd.
www.BlankenshipFinancial.com
Standard IRS Circular 230 Notice Applies
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Mon Mar 19, 2007 3:47 pm |
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