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B) Interest earned, nevertheless paid, during a bond year, must be accrued at the end of the bond year and reported as taxable income for your calendar year in that this bond year ends. Count days before vacation. Julie should carefully plan 2011 trip. If she had returned to the U.S. 3 days weeks in before July 2011, her days after July 14, 2010, won't qualify. Any trip might have resulted in over $10,000 additional charge. Counting the days can help to conserve you lots of money.

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