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Hello @RobertB4444 & @JamesG1 - I was waiting for a confirmation from my financial advisor on the updated info you both provided this week and she just got back to me - looks like the bond was actually not sold. Here is the info she provided:
The 1099-B shows under "additional information" that this is a return of principal.
This bond was not sold, it was Called by the issuer at a premium (i.e., a called bond at a premium). This means that the 5,000 shares were paid back to you, and there was a premium over the amount paid for the bond of $111.71. So basis isn’t reported or necessary in this situation, nor is it a gain from sale - no sale occurred.
You will need to count it as a gain due to the bond being called at a premium.
I've attached both a screenshot of the section of the 1099-B she was referring to and what I believe I should now enter in TurboTax Premium online. Would you agree that the way I entered it on the 1099-B form (on the attached) represents this particular situation? If not, please let me know exactly how to enter this in TurboTax Premium online. This change increased my taxes due quite a bit so I just want to double check with you both.
This type of tax event is new to me, so I really appreciate your continued help on this. 🙏🏻
