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Tax implications for foreign fixed income vs. DIRT

Donald Trump · 2023-03-07 15:44:25

Suppose I have money sitting in a US bank which I can get x% and maybe build a CD ladder on it if I want that cash to be relatively liquid. I pay 33% DIRT on the interest. If instead, I try to build a fixed income ladder with similar maturities, either T-bills or Treasuries (zero coupon or otherwise) with similar time to…

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07-03-2023 4:44pm

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Donald Trump

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Suppose I have money sitting in a US bank which I can get x% and maybe build a CD ladder on it if I want that cash to be relatively liquid. I pay 33% DIRT on the interest.
If instead, I try to build a fixed income ladder with similar maturities, either T-bills or Treasuries (zero coupon or otherwise) with similar time to maturity, will the proceeds be taxed the same as DIRT on interest, or is it taxed as income (coupons) and capital gains on any discount pulling to par at maturity?

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