You don't apply it to any year. You paid accrued interest to the original owner because that original owner held the bond during some part of the interest-bearing period. Thus, the original owner is entitled to their share of the interest that has already accrued. When the bond pays interest, you will receive the full semi-annual amount (assuming the bond pays semi-annual interest); even though you did not own the bond for the entire semi-annual period. You make up for that by paying the original owner for their share of the accrued semi-annual interest.
If you were to sell the bond, you too would be entitled to some part of the interest that has already accrued while you owned the bond. The buyer would pay you the portion of the accrued interest. Moreover, you would report that accrued interest on your tax return.
@JuiceKing
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