Cost for busing US Bonds

I have incurred $5 for buying US Bonds. Let say when I incuured 9505 ($9500 for bond price and $5 for cost to broker), when maturity I received back $10,000. Then, the amount be reported as taxable income should be $495, Right?

Hi,

"US government bonds, sometimes known as T-bills or treasury bills are generally taxed as income rather than capital gains.  The return is paid at maturity rather than regular interest

payments.  In the UK, these are known as deeply discounted securities, with the discount being the difference between the price at which they were issued and the price received at maturity.

On a foreign investment the income is the difference between the purchase and redemption price after each has been converted to sterling on the day the transactions took place, so includes

any foreign exchange gains.  Losses cannot be deducted. 

Have a look at:

Savings and Investment Manual

for more information." 

Thank you.