Menu

Cost basis of Series E US Saving Bonds redeemed in 2013

Home General Investing Cost basis of Series E US Saving Bonds redeemed in 2013

  • Avatar BrotherBeijing 
    Participant
    Status: Retired
    Posts: 5
    Joined: 03/10/2019

    I’m involved figuring out how we should divvy up assets of a relative who just passed on.

    (None of my children, siblings nor myself are close enough to receive any funds which is why I was chosen to do this).

    He didn’t keep records very well.

    He did note that in 2013 he cashed in on TreasuryDirect.org, Series E Bonds worth $21,702 and that the interest rate was 4.0 percent, 30 years.

    To figure out the cost basis, can I just use the simple interest formula, P(+1(.04/12)^(12*30), worked backwards?

    Thanks.

    #197224 Reply
    Avatar ZZZ 
    Participant
    Status: Spouse
    Posts: 292
    Joined: 06/18/2018

    It’s 2019. How does the basis of a bond cashed in back in 2013 pertain to divvying up assets at present?

    #197242 Reply
    Liked by Peds
    Avatar BrotherBeijing 
    Participant
    Status: Retired
    Posts: 5
    Joined: 03/10/2019

    US Savings Bonds come in $500, $1000, $5000, etc. even denonominations, right?

    #197272 Reply
    Liked by Peds
    Avatar Peds 
    Participant
    Status: Physician
    Posts: 3010
    Joined: 01/08/2016

    If these were cashed they already part of the estate. you can also go online and figure out the cost for any bonds that have not yet been cashed.

    #197275 Reply
    Liked by Zaphod
    Avatar BrotherBeijing 
    Participant
    Status: Retired
    Posts: 5
    Joined: 03/10/2019

    I DO have my relative’s old TD account number, SSN, TD website login id and password, but the TD website account was closed in 2014.

    I don’t have much experience with US Savings Bonds.

    I contacted TD Customer Service using their messaging system and they told me to send a signed letter requesting a transcript with our attorney’s Estate Executor Statement.

    I did this the other day.

    I just wonder if the TD transcript will contain enough information to determine the original cost basis some 35-40 years ago, etc.

     

    #197316 Reply
    Avatar ZZZ 
    Participant
    Status: Spouse
    Posts: 292
    Joined: 06/18/2018

    You said the bonds were redeemed in 2013…why does the remote prior cost basis for a US bond redeemed 6 years ago matter in 2019?

    #197324 Reply
    Liked by Zaphod, Peds
    Avatar Peds 
    Participant
    Status: Physician
    Posts: 3010
    Joined: 01/08/2016
    Earnest refinancing bonus
    I just wonder if the TD transcript will contain enough information to determine the original cost basis some 35-40 years ago, etc.

    Click to expand…

    why?!?!?!

    #197327 Reply
    Avatar BrotherBeijing 
    Participant
    Status: Retired
    Posts: 5
    Joined: 03/10/2019

    How do US Savings Bonds work exactly?

    After the 30 year maturity do they continue to earn interest?

    After 30 year maturity is it worth the face value of, $500, $100, $5000, etc.?

    If my relative cashed in $21,702 of 4% Series E Bonds how much was the original cost?

     

    #197328 Reply
    Avatar DCdoc 
    Participant
    Status: Physician
    Posts: 326
    Joined: 06/14/2016

    Cost basis is 1/2 the face amount for E bonds.

    #197330 Reply
    Avatar DCdoc 
    Participant
    Status: Physician
    Posts: 326
    Joined: 06/14/2016

    If you create a treasury direct account and know the details of the bonds (issue date, redemption date, etc) you can get an accurate idea. But I agree with others – there’s no actual need to know the cost basis for bonds redeemed years ago if an estate.

    #197331 Reply
    Liked by Zaphod, Peds
    Avatar Peds 
    Participant
    Status: Physician
    Posts: 3010
    Joined: 01/08/2016

    Ok I’m over this.

    #197333 Reply
    Avatar veritablpenguin 
    Participant
    Status: Physician
    Posts: 42
    Joined: 04/11/2017

    He doesn’t have bonds any more, he redeemed them.  He has $21702 in cash.  What he bought them for is irrelevant, unless you just like playing with math functions in Excel as a hobby.

    #197391 Reply
    Avatar BrotherBeijing 
    Participant
    Status: Retired
    Posts: 5
    Joined: 03/10/2019
    Disability Insurance

    Cost basis is 1/2 the face amount for E bonds.

    Click to expand…

    O.K. So then I would imagine my relative *could* have 35-40 years ago bought a face value $20,000 of Series E US Savings Bonds for $10,000.

    After 30 years or so the value summed up to be the face value of $20,000.

    Leaving it sit after maturity gained an additional $1,702 to sum up to $21,702 (as documented on pieces of paper left inside the desk after my relative’s death).

    Thus the cost basis would be 1/2 or $10,000, and the long-term interest gain is $11,702.

    Does that sound plausible?

    Of course I still have to obtain real figures from TD transcripts that I just requested by snail mail last Friday.

    #197408 Reply
    Zaphod Zaphod 
    Participant
    Status: Physician, Small Business Owner
    Posts: 5396
    Joined: 01/12/2016

    Agree with everyone else. Doesnt matter. You have 21,702 in cash. Basis doesnt matter. Cant imagine how it would have ever mattered actually.

    #197410 Reply
    Avatar G 
    Participant
    Status: Physician, Small Business Owner
    Posts: 1316
    Joined: 01/08/2016

    I bought a bottle of Balvenie 30yo for $600.  By the time I finished it 2 years later, that same liquid was worth $800.

    None of that matters, just like it doesn’t for your *redeemed* savings bonds.

    If you’re just messing with us, nice work–you got a lot of responses!

    #197411 Reply

Reply To: Cost basis of Series E US Saving Bonds redeemed in 2013

In case of a glitch or error, please save your text elsewhere, clear browser cache, close browser, open browser and refresh the page.

you're currently offline

Notifications Mark all as read  |  Clear