I have a 2 year t-note maturing 11/30/2024 @4.5%. It is worth about 0.86% over face value. A couple of questions:
- Would that entire amount (0.86% * face value) be treated as capital gains, or is there some complicated formula to determine what
part is interest vs capital gain?
-- I mainly want to use the gain to offset a capital loss carryover (much bigger than this and much bigger than $3K plus this gain) to
maybe save some taxes on the interest payouts. Are the capital gains (losses) from sale of treasuries subject to state tax in CA?
- Am I getting myself into a mess by doing this? :)
It appears that anoop <ghan...@gmail.com> said:
I have a 2 year t-note maturing 11/30/2024 @4.5%. It is worth about 0.86% over face value. A couple of questions:Are you planning to sell it now, or wait and let it mature?
- Would that entire amount (0.86% * face value) be treated as capital gains, or is there some complicated formula to determine whatUnless you sell it on the day they pay interest, some part of the sale
part is interest vs capital gain?
price is the interest acccrued but not yet paid.
My broker offers me 10 of those notes for $10,103 principal plus $145.88 accrued interest,
total $10,248.88.
-- I mainly want to use the gain to offset a capital loss carryover (much bigger than this and much bigger than $3K plus this gain) toThe interest is exempt from state taxes but capitals gains and losses are not.
maybe save some taxes on the interest payouts. Are the capital gains (losses) from sale of treasuries subject to state tax in CA?
- Am I getting myself into a mess by doing this? :)Since they're so close to maturity it seems like a lot of hassle for
modest benefit. If you hold on and let them mature, all of the
interest is CA exempt and if you bought them at par, there'll be no
gain.
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