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Biotech / Medical : Biotech Valuation -- Ignore unavailable to you. Want to Upgrade?

To: Biomaven who wrote (31987)	8/7/2009 9:56:23 PM
From: A.J. Mullen	Read Replies (2) \| Respond to of 52153

OT TIPS I'm still trying to educate myself regarding bonds and I'm looking at the Treasury's website (http://www.treasurydirect.gov/indiv/research/indepth/tips/res_tips_faq.htm) Can I be taxed for TIPS earnings before I receive payment for those earnings? Yes. If the principal of your TIPS grows in a given year, that growth will be taxed as income in that year, even if your security hasn't matured and, therefore, you haven't received payment of the principal. Paying tax as the principal accumulates seriously reduces the attraction of this instrument. It's nice that only federal taxes applies to both principal accrual and interest payments, but the additional income tax will be a serious drain. Ashley