election to report bond interest on final 1040

[L.S.]

Client died in 2009 and had hh bonds with deferred interest that needs to be reported when these bonds are cashed. As I understand it, there is an election to report this interest on the final 1040 for decedent. Some bonds are in his name only, some in his name and pre-deceased spouse and some held jointly in the name of decedent and son and some in name of decedent and daughter. I believe that all this interest can be reported in the 1040 - even the amts for the son and daughter - is this correct. Where do I go to find this information?

Thanks.

[JRS]

I can't find a cite, but I have included deferred interest on a final 1040. Check the TreasuryDirect site, it has FAQ's.

http://www.treasurydirect.gov/indiv/resear...nds_eedeath.htm

[OldJack]

>>Where do I go to find this information?<<

You can't find it because it does not exist.

[L.S.]

>>Where do I go to find this information?<<

You can't find it because it does not exist.

I beg to differ --

I actually found what I was looking for IRS code section 454(a) and reg. section 1.454-1(a)

[OldJack]

I beg to differ --

I actually found what I was looking for IRS code section 454(a) and reg. section 1.454-1(a)

>>Sec. 454. Obligations issued at discount

-STATUTE-

(a) Non-interest-bearing obligations issued at a discount

If, in the case of a taxpayer owning any non-interest-bearing

obligation issued at a discount and redeemable for fixed amounts......

<<

I thought you said the client had an interest bearing obligation when you said "Client died in 2009 and had hh bonds with deferred interest that needs to be reported ". I think the statute above is clear on non-interest bearing obligations.