effect of bond issue on income statement
No, it would not show up on the income statement as it isn't income. It would show up in the cash flow statement as a result of financing activities.
"Junk Bonds (aka High Yield bonds) are typically those bonds from issues with credit ratings below BBB-. Not all such companies are big risks. They are just less financially sound than other, higher rated, companies. If you are not comfortable doing the analysis yourself, you should consider investing in a mutual fund, ETF, or unit trust that invests in high yield bonds. You get access to ""better quality"" issues because a huge amount of the debt markets goes to the institutional channels, not to the retail markets. High yield (junk) bonds can make up a part of your portfolio, and are a good source of regular income. As always, you should diversify and not have everything you own in one asset class. There are no real rules of thumb for asset allocation -- it all depends on your risk tolerance, goals, time horizon, and needs. If you don't trust yourself to make wise decisions, consult with a professional whom you trust." I can't give you a specific answer because I'm not a tax accountant, so you should seek advice from a tax professional with experience relevant to your situation. This could be a complicated situation. That being said, one place you could start is the Canada Revenue Agency's statement on investment income, which contains this paragraph: Interest, foreign interest and dividend income, foreign income,   foreign non-business income, and certain other income are all amounts   you report on your return. They are usually shown on the following   slips: T5, T3, T5013, T5013A To avoid double taxation, Canada and the US almost certainly have a foreign tax treaty that ensures you are only taxed in your country of residence. I'm assuming you're a resident of Canada. Also, this page states that: If you received foreign interest or dividend income, you have to   report it in Canadian dollars. Use the Bank of Canada exchange rate   that was in effect on the day you received the income. If you received   the income at different times during the year, use the average annual   exchange rate. You should consult a tax professional. I'm not a tax professional, let alone one who specializes in the Canadian tax system. A professional is the only one you should trust to answer your question with 100% accuracy. "A paper EE series US Savings Bond is what is called a zero-coupon bond: you buy it at a discount from the face value (50% discount for US Savings Bonds), and it earns interest though you don't get the interest as cash (that you could invest elsewhere). Instead, the interest earned increases the  redemption value of the bond -- the money that you will receive if you take the bond to your bank to cash it in before the maturity date. When the bond finally matures, its redemption value has increased to the full face value.  The maturity date for paper EE series US Savings Bonds issued in May 1995 is 17 years. Now, with zero-coupon bonds in general, the IRS requires that the interest earned each year be reported as interest income even though you did not receive any cash income, and tax is due on the interest (unless it is a tax-free municipal bond or the bond is held in a tax-deferred investment such as an IRA or 401(k) plan). However, there is a special exemption for EE Series US Savings Bonds in that the owner has the option of not declaring the interest each year but instead reporting all the accumulated interest as interest income in the year of redemption. (Most people choose this option). It is not capital gains as you would like to be.   So, if your grandfather paid $11K$ for EE series US Savings Bonds in May 1995, the face value of the bonds he received was $22K, and, assuming that your grandfather followed typical practice, the bonds were worth $22K in May 2012, and $11K interest income needed to be declared that year.  This matches up pretty well with the amount the IRS told him was interest income on which he had to pay income tax (though the year is off by 3).  Now, your grandfather died in 2008, and what happened to the bonds depends on in whose name(s) the bonds were registered (e.g. was your father named as the survivor on the bond), or, if your grandfather was the sole owner, how your grandfather's estate was handled (the interest accrued till your grandfather died belonged to the estate). Note also that EE series bonds continue to earn interest in years 18 through 30 after they mature, but at maturity, the interest rate is reset by the Treasury, usually to the long-term interest rate which has been very small over the past many years. So, the interest earned in 2012-2015 when your father effectively redeemed the bond is small enough that the ""approximately $11K"" could be construed as covering $11.3K consisting of $11K of interest before maturity and $300 interest (at about 1% per annum) over the three-year post maturity period. The $100 interest earned by you for the current year sounds about right too. All in all, it might be the case that your grandfather bought the bonds in his name, your father's name, and your name (were you very young in 1995?), your father and you inherited the bonds in 2008, and then your father removed your grandfather's name from the bonds in 2015, thus transferring the bonds to his name and yours in 2015, and soon thereafter removed his name, transferring the bonds into your name alone. As to why 2015 and not 2008 when your grandfather passed away, did you turn 21 in 2015 (twenty years after the bonds were bought)?" You can always take deduction for foreign tax paid on Schedule A, or calculate foreign tax credit using form 1116. Credit is usually more beneficial, but in some cases you will be better of with a deduction. However, in very specific cases, you can claim the credit directly on your 1040 without using the form 1116. Look at the 1040 instructions for line 47: Exception.   You do not have to complete Form 1116 to take this credit   if all of the following apply. All of your foreign source gross income was from interest and dividends and all of that income and the foreign tax paid on it were   reported to you on Form 1099-INT, Form 1099-DIV, or Schedule K-1 (or   substitute statement). The total of your foreign taxes was not more than $300 (not more than $600 if married filing jointly). You held the stock or bonds on which the dividends or interest were paid for at least 16 days and were not obligated to pay these   amounts to someone else. You are not filing Form 4563 or excluding income from sources within Puerto Rico. All of your foreign taxes were: Legally owed and not eligible for a refund or reduced tax rate under a tax treaty, and Paid to countries that are recognized by the United States and do not support terrorism. For more details on these requirements, see the Instructions for   Form 1116. Here is the technical guidance from the accounting standard FRS 23 (IAS 21) 'The Effects of Changes in Foreign Exchange Rates' which states: Exchange differences arising on the settlement of monetary items or on translating monetary items at rates   different from those at which they were translated on initial recognition during the period or in previous   financial statements shall be recognised in profit or loss in the period in which they arise. An example:  You agree to sell a product for $100 to a customer at a certain date. You would record the sale of this product on that date at $100, converted at the current FX rate (lets say £1:$1 for ease) in your profit loss account as £100. The customer then pays you several $100 days later, at which point the FX rate has fallen to £0.5:$1 and you only receive £50. You would then have a realised loss of £50 due to exchange differences, and this is charged to your profit and loss account as a cost. Due to double entry bookkeeping the profit/loss on the FX difference is needed to balance the journals of the transaction. I think there is a little confusion as to what constitutes a (realised) profit/loss on exchange difference. In the example in your question, you are not making any loss when you convert the bitcoins to dollars, as there is no difference in the exchange rate between the point you convert them. Therefore you have not made either a profit or a loss.  In terms of how this effects your tax position; you only pay tax on your profit and loss account. The example I give above is an instance where an exchange difference is recorded to the P&L. In your example, the value of your cash held is reflected in your balance sheet, as an asset, whatever its value is at the balance sheet date. Unfortunately, the value of the asset can rise/fall, but the only time where you will record a profit/loss on this (and therefore have an impact on tax) is if you sell the asset. I assume I can/will need to file an 83(b) election, in order to avoid   tax repercussions? What exactly will this save me from? 83(b) election is for restricted stock grants, not for stock purchases. For restricted stocks, you generally pay income tax when they vest. For startups the price difference between the time of the grant and the time of the vesting can be astronomical and by choosing 83(b) you effectively pay income tax on the value of the grant instead of the value of the vest. Then, you only pay capital gains tax on the difference between the sale price and the grant value when you sell. In your case you're exercising an option, i.e.: you're buying a stock, so 83(b) is irrelevant. What you will pay though is the tax on the difference between the strike price and the stock FMV (unless the stocks you end up buying are restricted - which would have been the case if you exercised your options early, but I don't think is going to be the case now). What steps should I take to (in the eyes of the law) guarantee that   the board has received my execution notice? The secretary of the board   is a notorious procrastinator and can be very unorganized. You should read what the grant contract/company policy says on that. Ask the HR/manager. Usually, a certified letter with return receipt should be enough, but you should verify the format, the address, and the timeframe. It appears that co-signing does impact your debt-to-income ratio, at least in the US.  An article on Kiplinger says: An article on Forbes agrees saying: There is a similar question here. Bond prices move inversely to their yields.  So when you sell bonds and create a supply side deluge, bond prices will fall.  Since bond prices are falling, yields go up.  (The dollar amount that the bond pays out is the same.  It's simply that since the bond price has fallen, that dollar amount paid out expressed in percentage terms of the bond price has risen).