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Clark bought Series EE U.S. savings bonds after 1989. Redemption proceeds will be used for payment of college tuition for Clark’s dependent child. One of the conditions that must be met for tax exemption of accumulated interest on these bonds is that the:______
A. Purchaser of the bonds must be the sole owner of the bonds (or joint owner with her or his spouse).B. Bonds must be bought by a parent (or both parents) and put in the name of the dependent child.C. Bonds must be bought by the owner of the bonds before the owner reaches the age of 24.D. Bonds must be transferred to the college for redemption by the college rather than by the owner of the bonds.

Respuesta :

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Answer:

A) Purchaser of the bonds must be the sole owner of the bonds (or joint owner with his or her spouse).

Explanation:

In order for Clark to meet the conditions required for the tax exemptions of accumulated interest on Series EE US Savings bonds; he must have purchased the bonds and must be the owner of the bonds, plus he must at least be 24 years old.

The bonds cannot be held in the dependent's name nor they can be transferred to any college for redemption.

Only if Clark meets the prior requirements, he will be able to deduct any interest income from his gross income.

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