What GOVERNMENT BONDS ISSUED AT A DISCOUNT means: Certain U.S. Government bonds (Series E and EE) are issued at a discount and do not pay interest during the life of the bond. Instead, the bonds are redeemable at increasing fixed amounts. Thus, the difference between the purchase price and the amount received upon redemption represents interest income to the holder. A cash-basis taxpayer may defer recognition of taxable income until such bonds are redeemed or until the year of final maturity, whichever is earlier. Alternatively, the taxpayer may elect to include the annual increase in the value of the bond in gross income on an annual basis.
- Definition Goodwill:
- Dictionary Goodwill is the value of a trade or business based on expected continued customer patronage due to its name, reputation, or any other factor government bonds issued at a discount.
- Definition Golden Parachute:
- Dictionary An agreement entered into by a corporation with its top executives to make payments to the executives in the event of a change in corporate control. Such payments are treated as compensation government bonds issued at a discount.
- Definition Gross Income:
- Dictionary Total worldwide income received in the form of money, property, or services that is subject to tax unless specifically exempt or excluded by law government bonds issued at a discount.
- Definition General Rule:
- Dictionary The method of determining the taxable part of a pension used when the taxpayer is not eligible to use the simplified method government bonds issued at a discount.
How works Government Bonds Issued at a meaning in Tah definition G .