What are the tax consequences of redemption of SG HLDGS INC Index Linked CTF Series-18?

Question by greyowl: What are the tax consequences of redemption of SG HLDGS INC Index Linked CTF Series-18?
This is a type of Zero Coupon Bond.

Best answer:

Answer by TaxGuru
Well, I can’t find quotations or any other information on that particular issue. You should have accrued interest income on the bond during your holding period, which was added to your cost basis. Interest accrued to the date of redemption should be taxable as ordinary income; any premium you receive over and above the issue price plus accrued interest should be capital gain.

This is just general advice and can’t be relied upon. You should consult your tax advisor for detailed advice.

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