Investing - Theory, News & General • Re: STRIPs in Taxable

Imputed income is taxable for STRIPS in taxable accounts. You are taxed on increasing value even though you do not receive the income until maturity. Many investors don't want to front money for taxes when the income being taxed will not be received for a number of years. STRIPS work well in tax-deferred accounts.

So not much benefit over regular treasuries if held in taxable?

That is correct. With regular treasuries you are only taxed on the income your receive the current year. With STRIPS you are taxed on income you might not receive for up to 30 years.

Statistics: Posted by 123 — Fri Oct 02, 2026 12:16 am