In 2022, I purchased several treasury bonds and I paid accrued interest for them. Some of the bonds produced first interest payment in 2022 and some in 2023. For simplicity, for those which produced interests in 2022, let's assume the interest earned in 2022 is $100. And assume the accrued interest is $30 for every bond.
I understand that I can adjust the interest income to 70 = 100 - 30.
But what about those bonds that produced first interest payment in 2023?
Can I apply their accrued interest in 2022? Or should I wait until tax year 2023?
The latter seems like a pain because I have to:
- Find them. Exclude them from 2022.
- Keep track of all the bond transactions in previous years and look them up in later years.
- All by myself because TurboTax does not know which bond got accrued interest or produced interest in which year. (they are not on 1099-INT)
