Page 46 - Interest Income - Individuals

Purchased Jointly

Jointly

 If you and a co-owner each contributed funds to
buy Series E, Series EE, or Series I bonds jointly
01 02 and later have the bonds reissued in the co-

owner's name alone, you must include in your
gross income for the year of reissue your share of
all the interest earned on the bonds that you have
not previously reported.
 The former co-owner doesn't have to include in
gross income at the time of reissue his or her
share of the interest earned that was not reported
04 03  This interest, however, as well as all interest
before the transfer.

earned after the reissue, is income to the former
co-owner. This income-reporting rule also applies
when the bonds are reissued in the name of your
former co-owner and a new co-owner.
 But the new co-owner will report only his or her
share of the interest earned after the transfer.
 If bonds that you and a co-owner bought jointly
are reissued to each of you separately in the same
proportion as your contribution to the purchase
price, neither you nor your co-owner has to
report at that time the interest earned before the
bonds were reissued. 44