Regarding Treasury Notes that I purchased, the notes had accrued interest at the purchase time. The brokerage 1099 documents for cost basis do not seem to take this into account as I would expect. Therefore, I need to subtract this accrued interest out of my gains. Going through the TurboTax 1099-INT questions, I chose "Tell us if any of these uncommon situations apply" "We need to adjust the taxable amount". I had more than one treasury note purchased, so I added the accrued interest amounts together and entered the value. My question is this, should I choose "I received all or part of this interest for someone else (I am a nominee)" or "My accrued interest is included in this Form 1099-INT". It seems like the "Accrued Interest..." choice would be correct, but I don't think this value "is included in this Form 1099-INT", at least the one provided by the broker. I looked at Schedule B to see what making each choice does in the form. On Schedule B, it simply lists either "Nominee Distribution" or "Accrued Interest" depending on which I chose. Which option is correct?
In addition, I don't think the accrued interest at purchase time is provided to the IRS on the 1099 papers provided by the broker. Given that I entered this random looking number, will this cause a red flag? Or is there any way to provide a note or additional details to explain the value that I entered.
I am using TurboTax Premier 2023 Desktop.
