frenzal rhomb Posted January 25, 2006 Share Posted January 25, 2006 Standard bank issued cd. started in April '05 matures in October '06. Do I declare interest earned to date or when it matures? Thanks. Quote Link to comment Share on other sites More sharing options...
Big John Posted January 26, 2006 Share Posted January 26, 2006 (edited) I think it is when it matures. But I would look to see if the bank sends you a statement of interest earned (1099-something), then use that. Edited January 26, 2006 by Big John Quote Link to comment Share on other sites More sharing options...
frenzal rhomb Posted January 26, 2006 Author Share Posted January 26, 2006 Thats sort of what I thought as the funds are technically unavailable to me at this time. It seems like such a simple question yet I can't find a concrete answer. Quote Link to comment Share on other sites More sharing options...
yo mama Posted January 26, 2006 Share Posted January 26, 2006 (edited) Thats sort of what I thought as the funds are technically unavailable to me at this time. It seems like such a simple question yet I can't find a concrete answer. 1288602[/snapback] Just a quick note: please verify the treatment of CDs with your investment/tax advisor. But you are a cash basis taxpayer. Income is not taxable to you until you receive it. If you were an accrual basis taxpayer (like a corporation) you'd be taxable on the income when it was earned, even if you hadn't received it yet. Therefore, without more info, I believe the interest that has been earned and accrued, but NOT yet paid, should not yet be taxable to you. Edited January 26, 2006 by yo mama Quote Link to comment Share on other sites More sharing options...
Junkyard Posted January 26, 2006 Share Posted January 26, 2006 Just a quick note: please verify the treatment of CDs with your investment/tax advisor. But you are a cash basis taxpayer. Income is not taxable to you until you receive it. If you were an accrual basis taxpayer (like a corporation) you'd be taxable on the income when it was earned, even if you hadn't received it yet. Therefore, without more info, I believe the interest that has been earned and accrued, but NOT yet paid, should not yet be taxable to you. 1288607[/snapback] Always a good idea to check with your investment/tax advisor. I know a number of standard bank CD's, however, allow you access to accrued interest without penalty (they don't advertise it because, of course, they like the assets under management). You should get a 1099-INT by 1/31 from the bank, which should give you a pretty good clue. Good Luck. Quote Link to comment Share on other sites More sharing options...
frenzal rhomb Posted January 26, 2006 Author Share Posted January 26, 2006 Thanks guys!!! Just wondering since I've gotten all my other tax info but have not yet heard from this bank. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.