It might be a bit late to ask now, but today I bought some Treasury strips; they cost $59 each and are redeemed for $100 in 2017. I understand I have to pay taxes on the appreciation each year, but how does that work? Do I get a 1099int or do I have to figure it out myself? Is it interest or capital gains? Is it state tax free?
Yeah, I should have asked these questions yesterday.