In doing Pennsylvania taxes, I had the case of a T-note bought at a discount, maturing during 2023. TT handles federal tax perfectly. But when looking at the PA state form for gains/losses, you see that TT has put the face value of the t-note in both the cost and proceeds columns, resulting in a zero gain. In fact, I think the gain should be the difference between face value and the purchase price (cost) of the T-note. I believe that although the interest paid on the notes is not state taxable, the gain in value (=the discount) is taxable. Comments?
On PA form, TT also screws up treatment of the accrued interest paid and puts it in a positive number (causing a tax burden instead of a reduction).
