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AR15.COM
6/28/2010 4:35:33 AM EDT
Looks like I'll be purchasing my first house here in July.  I have $10k worth of Treasury Bonds that I wanted to cash out and use towards my down payment.  Is the cashed out Bonds taxable or not since it will be used for my 1st house purchase.  I know there were supposedly waivers for cashing out IRAs and such, but wasn't sure about Bonds.



Any ideas?
6/28/2010 4:39:03 AM EDT
[#1]
If you booked a gain on the bonds (you got back more than what you paid for it, inclusive of commissions), then you pay a tax on the capital gain.

Depending on your situation, you may need to consult a tax attorney if part of the bond appreciation was in fact accrued interest.

You of course will be paying taxes on the interest coupons.