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Using Banks and Bank Accounts/Paying Taxes on CD's
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Question
Are CD's considered income if you move them from one bank to another during the grace period. Thank you.
Pat, only the interest earned on a CD is income. Moving the CD around does not have anything to do with taxation.
ie, A CD of $100,000 for one year with one bank @ 5%= $5,000 in taxable income,
A CD with 12 different banks for one month each @ 5%= the same $5,000 income
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Answers by Expert:
Jim Meadows
Expertise
I can respond to most questions concerning consumer and business relationships with US financial institutions. My expertise touches on deposit and loan issues and particularly on strategies to navigate through bank policies personell and practices. I have a degree in Economics, attended law school, Graduate Shool of Banking, and Commercial Lending and Compliance Schools.
Experience
I have twenty years experience as a bank CEO. Most of those years were spent operating a bank focused primarly on serving consumer/retail needs. I helped pioneer deposit and loan products for low/moderate income individuals. I currently serve on multiple bank boards and am Chairman of a Commercial Bank in Atlanta.
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