Hello,
1. I bought treasuries at a discount in 2023 with 2-5 year maturity
2. Will the pro-rated (amortized) Accrued Market Discount be added to the interest paid in 2023 and every year following or,
3. Accrued Market Discount is realized as a lump-sum upon maturity or sale of the bond?
4. If it’s added to the interest on my broker’s 1099 how do I elect to defer it in TT (if allowed by IRS)?
5. Since Accrued Market Discount is considered interest by the IRS, is it taxed by the State or waived as any interest on government obligation?
Thank You,
Spichon
