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Level 15
Level 15

Get your taxes done using TurboTax

When you are making a summary entry you have to enter accrued market discount as a negative amount. Enter -29.54. Then the loss amount will be correct.


But there is another issue. The accrued market discount has to be reported as interest income on Schedule B. When accrued market discount is included in a summary entry TurboTax does not do this automatically. Since you are using the desktop software, you can make the correction in forms mode. After you finish entering the investment sales summary, go to forms mode. In the list of forms on the left, look for a Capital Gain (Loss) Adjustments Worksheet ("Capital g/l adj" in the list) with a red exclamation point, indicating that it has an error. Open that worksheet and scroll all the way down to the bottom, to Part IV. You will see a box labeled "Accrued interest to Sch B" that is shaded pink. Enter the amount of the accrued market discount in that pink box as a positive amount. The box will then turn yellow and the red exclamation point will go away.