Page 45 - Interest Income - Individuals Handbook

Ownership Transferred

01 02 Ownership

 If you bought Series E, Series EE, or
Series I bonds entirely with your own
funds and had them reissued in your co-
owner's name or beneficiary's name
04 03 alone, you must include in your gross

income for the year of reissue all
interest that you earned on these bonds
and have not previously reported.
 But, if the bonds were reissued in your
name alone, you don't have to report
the interest accrued at that time.
 This same rule applies when bonds
(other than bonds held as community
property) are transferred between
spouses or incident to divorce.

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