For a couple of my bonds, I have Accrued Market Discount. The entry on my 1099-B looks like
Sale Price 10000, Basis 9900, Market Discount 100.
I make these entries into TT with the Market Discount getting entered on the "Any of these less common items" page. Then I need to adjust the basis because the Market Discount is treated like ordinary interest. So on the next page "Select any less common adjustments that apply", there is no choice for "Market Discount". There is only "An adjustment is required for a reason that is not already covered". So I choose that and enter "-100" in the box for the adjustment. That does adjust the basis to 10000 as I want .
BUT then Form 8949 line 1f gets the code "O" entered into it whereas the correct code should be "D".
What is the proper way to get the basis adjusted so that I get a "D" code in 8949 line 1f?
If there is no "proper" way, can I manually modify the entry on 8949 line 1f before efiling?
PS - I looked back at previous years returns and I see the "D" code in 8949 line 1f. I can't remember for sure, but maybe TT automatically adjusted for Market Discount. Now it clearly does not.
Thanks.
