DavidD66
Expert Alumni

Investors & landlords

Any interest that accrued during the life of the decedent would have been reflected in the value of the bond on the date of death.  The beneficiary would not have to recognize that interest as income.  Similarly, any interest that accrued between distribution and sale would have been reflected in the sales price of the bond.  The beneficiary doesn't have any interest income to report.  

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