This week we've got a couple of questions on determining cost basis, a mortgage interest deduction quandary and a bond (eck!) question. We'll also clear up some confusion over options reporting. Please send any other questions to
email@example.com . Please include your full name. gift-tax issues when your child takes a withdrawal.) The child will get a step-up in basis on the entire account when the spouse dies. And lastly, if you own the shares in your name and your spouse dies, your basis remains unchanged. Schedule B -- Interest & Dividend Income. Four months later, you'd get a check for the full six months of interest, which you'd show as a positive number on Schedule B. Your net accrued interest will equal the four months you've owned the bond. Check out the Internal Revenue Service's Publication 550 -- Investment Income and Expenses for more details. The Complete Idiot's Guide to 401(k) Plans . Federal law prohibits what is called "alienation of benefits," which means creditors can't tap into your 401(k). "Nobody will take them as collateral because you can't get at 'em," Lee says. Sorry. Nice try, though. Tax Forum , you initially explain how to report specific option trades. Later, you state that every transaction is not needed since "you'll just confuse the Internal Revenue Service." I'm confused. Do I list all option trades or just a lump sum? -- Joseph Cassaro Joseph, You have to report each and every trade. But you can choose to do it on your own spreadsheet or to write them all out on Schedule D --Capital Gains and Losses. Either way you have to include the detail; it's just a matter of geography. If you are confident that your personal spreadsheet includes all the necessary information (i.e., it mirrors Schedule D), just drop the grand totals on the Schedule D and write "see attached schedule" in the description column (a). Then if the IRS is not satisfied with your lump-sum numbers, it'll have a road map to find the details, says Joe Parker, tax research analyst at H&R Block in Kansas City, Mo. Make sure your write your name and Social Security number on your spreadsheet, because the IRS agents take your return apart when they process it.