Canada Savings Bond reporting
The reporting of interest from Canada Savings Bonds can cause a few headaches. First determine whether the bonds are regular interest or compounding in nature. Regular interest bonds are reported every year for tax purposes. The same is true of compounding bonds that were acquired after 1989.
If your bonds were acquired before 1990, only one bond Series remains eligible for special tax treatment. That’s Series 44, which matures in 2001. This Series may be reported either on an annual accrual basis, or on a triennial basis in the future. If you have previously chosen the triennial reporting method, you will have reported interest in 1992, 1995, and 1998. The next time you’ll report interest will be in the year of maturity.
You can choose to switch from the triennial reporting method to the annual method at any time if you bring all accrued interest earned up to date on your tax return. But keep accurate records to avoid double reporting your interest on bonds when you actually receive it on maturity.