I have some I-Bond with substantial amt of accrued interest. If I donate those bonds to a charitable organization ("CO"):
e.g. a $100 I-Bond with $120 accrued interest for a redemption value of $220. Who reports the $120 interest? And my charitable deduction would be $100? OR $220?
TIA
If memory serves me, you can't donate them to a charity as US Treasury rules do not allow for the transfer of ownership while you are alive. If you want to make a donation to a charity now and use the bonds for the source of cash, you would have to cash the bonds. That would create an amount of taxable interest to you. You would then be making a cash contribution to a charity.
If I donate them upon my death, do I/my estate report the accrued interest as income?
And what will be the value of donation -- face amount ($100)? OR redemption value ($220) TIA
If your will states that the charity owns the bonds upon your death, then they are not included in your estate. As such there is no charitable deduction. Your estate and heirs don't pay any tax. The interest belongs to the charity who does not pay any tax on the income.
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