Solved: I paid accrued interest in 2018 on a bond, the interest income won't occur until 2019. How do I enter when the accured interest paid exceeds interest income ?
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shg
New Member

I paid accrued interest in 2018 on a bond, the interest income won't occur until 2019. How do I enter when the accured interest paid exceeds interest income ?

the situation will credit negative interest income.

On a state return if this is tax free income , it would show as negative interest income to be added back for tax free income- how does Turbo tax handle- I keep getting error message that income has to exceed expense

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Accepted Solutions
SteamTrain
Level 15

I paid accrued interest in 2018 on a bond, the interest income won't occur until 2019. How do I enter when the accured interest paid exceeds interest income ?

As noted before, the accrued interest you paid out to the seller of the bond (in this situation) is not to be entered in your tax return until you prepare your 2019 taxes in early 2020.  SO you do not report it on your 2018 tax return

Answered here...as best I could, and more added on too.:

https://ttlc.intuit.com/questions/4752577-how-does-one-enter-accrued-interest-paid-on-taxable-bonds-...

*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

View solution in original post

1 Reply
SteamTrain
Level 15

I paid accrued interest in 2018 on a bond, the interest income won't occur until 2019. How do I enter when the accured interest paid exceeds interest income ?

As noted before, the accrued interest you paid out to the seller of the bond (in this situation) is not to be entered in your tax return until you prepare your 2019 taxes in early 2020.  SO you do not report it on your 2018 tax return

Answered here...as best I could, and more added on too.:

https://ttlc.intuit.com/questions/4752577-how-does-one-enter-accrued-interest-paid-on-taxable-bonds-...

*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

View solution in original post

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