Series I bond interest on bonds received as gift

[km2019]

Is the interest earned on Series I bonds when cashed taxable if the bonds were a gift received from a relative after his death?  The bonds said "payable upon death".

[AJ]

     I am sorry to hear of the passing of your relative. When you say "gift", I'm assuming that you acquired ownership of the bond upon the your relative's death.  The recommended reference is : https://www.irs.gov/pub/irs-pdf/p550.pdf   (The 2017 version of the Pub 550 is latest available today, however, I'm not aware of modifications for this topic.) 

     Page 9 of the current Pub 550 states, "The manner of reporting interest income on Series E, Series EE, or Series I bonds, after the death of the owner (decedent), depends on the accounting and income-reporting methods previously used by the decedent."  Examples are provided in the publication.  For some cases, the executor of the estate pays taxes as part of the estate taxes.  And if the executor did not pay taxes on the bond from an estate tax return, then it appears that you would pay the taxes--most commonly, when you redeem the bond. 

[km2019]

Thanks for your reply.  I will look into that.

[mKhamnei]

I just cashed some series I bond and paid the proceed for my daughter college tuition. How do I report this tax deductible on my turbo tax

thanks for any reply