Determining the cost basis of a bond or note purchased at "par value" is easy--it's always par value.
Par value means a cost of $100 for each $100 of maturity value, the face amount of the note or bond.
A. If you bought a TAXABLE bond at PAR and redeemed it at MATURITY:
Your cost basis is par value, the face amount of the bond.
B. If you bought a TAX-EXEMPT bond at PAR and redeemed it at MATURITY:
Your cost basis is par value, the face amount of the bond.
C. If you bought a TAXABLE bond at PAR and sold it PRIOR to maturity:
Your cost basis is par value, the face amount of the bond.
D. If you bought a TAX-EXEMPT bond at PAR and sold it PRIOR to maturity:
Your cost basis is par value, the face amount of the bond.
Did we answer your question? If not, try:
Custom Search
Information provided is intended solely for U.S. individual cash-basis taxpayers and is believed to be accurate for most cases. Always consult your personal tax advisor about your own situation. Suggestions are most welcome. Please e-mail webmaster @ costbasis.com or write to us at P O Box 11022, Chicago IL 60611 with your comments.
