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Mr. X buys a $5,000, 3 year bond on September 1, 2019 that will provide 3% interest annually. All interest will be paid to him
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Mr. X buys a $5,000, 3 year bond on September 1, 2019 that will provide 3% interest annually. All interest will be paid to him on maturity. How much does he need to report on his 2019 and 2020 tax returns respectively?
2019: $150; 2020: $300
Nothing in either year due to the fact that he will not receive the interest until 2021.
2019: $0 ; 2020: $150
2019: $150 ; 2020: $150
Mr. X buys a $5,000, 3 year bond on September 1, 2019 that will provide 3% interest annually. All interest will be paid to him on maturity. How much does he need to report on his 2019 and 2020 tax returns respectively?
| 2019: $150; 2020: $300 | ||
| Nothing in either year due to the fact that he will not receive the interest until 2021.
| ||
| 2019: $0 ; 2020: $150 | ||
| 2019: $150 ; 2020: $150 |
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