Tax Law (Questions About Taxes)/Re-issue of EE & I Bonds


Hi John,
My parents want to re-issue $100K in a combination of EE & I bonds into my name which I know is possible and will create a taxable event on their part for the interest earned so far.

My question is will this also become a taxable event on my part as far as gifting is concerned even though I will become the new owner of the bonds? I know the annual gift limit is $13K which they typically do every year but due to their health issues they basically want to distribute their estate now. I can't seem to find an answer to this question.


Thanks for your question.

Actually the annual exclusion amount is now $14,000.

The gift will not create a current liability for you.  When you redeem the bonds, you will pay tax on the increase in value from their basis.  Alternatively, you may report the interest income annually.

Hope this helps.

John Stancil, CPA

Tax Law (Questions About Taxes)

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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