Hello - i'm doing some research on treasury bonds and it need clarification on taxation please - thanks for any help !
Question 1 - So lets say i'm buying a treasury bond not through treasury direct but through a Fidelity, T Rowe, Wells or company like that - i'm assuming that is referred to "secondary market" - is this terminology correct?
Questions 2 - More detailed, let's say I buy a treasury bond with (made up #'s) an offer price of 98.0 and a coupon of 2.3% with a coupon date of 1/31/23 and maturity of 3/31/23. If i always hold this to maturity is the 100 - 98 = 2 taxed as interest? or capital gain? i'm also assuming the 2.3% coupon payment is interest is well? does the 1099 split these out or is it all easily lumped into interest? 1099-int
thanks for feedback. My concern from reading the forums is the detailed accounting it seems like for bonds. But if i understand correctly, that accounting is only if you SELL a bond before maturity on the market? is this correct? With all the accounting it makes me wonder if CD's are just more straightforward and all interest 1099-int (again, assuming i always hold it to maturity)
thanks for any help and appreciate it !
